Trump-appointed judge blocks Biden rule limiting credit card fees


A Trump-appointed judge on Friday issued a temporary injunction to the U.S. Chamber of Commerce, ending the Biden administration's cap on credit card fees at $8, delivering a victory for big banks.

The Consumer Financial Protection Bureau's (CFPB) rule, which takes effect on May 14, could save American consumers more than $10 billion annually. When the moratorium decision by U.S. Judge Mark Pittman for the Northern District of Texas takes effect, ordinary Americans will lose approximately $27 million per day.

The U.S. Chamber of Commerce recently launched a series of lawsuits aimed at boosting record corporate profits at the expense of everyone else, but the U.S. Chamber of Commerce has temporarily succeeded — ensuring that families are kept price-gouged just a little longer through late credit card fees. ” Liz Zelnick, director of the Economic Security and Corporate Empowerment Program at Accountable.US, said in a statement.

“It’s time for the U.S. Chamber of Commerce to stop clogging the courts with baseless lawsuits designed to benefit corporate CEOs at the expense of working families—and for the judiciary to stop legalizing big industry’s purchase of space.”

The CFPB issued the rule on March 5 as part of the Biden administration's commitment to crack down on “junk fees.” However, the U.S. Chamber of Commerce and other banking associations, including the American Bankers Association and the Consumer Bankers Association, soon filed lawsuits to block the plan. Senior executives from Bank of America, Capital One, Citibank and JPMorgan Chase reportedly serve on the board of directors of the group behind the lawsuit.Washington post.

“Banks are making billions in profits by charging exorbitant late fees,” Sen. Elizabeth Warren (D-Mass.) wrote responded to the ruling on social media on Saturday. “Now, a Trump-appointed judge is siding with bank lobbyists to block the Biden administration’s new rules limiting these junk fees.”

Accountable.US also criticized the lawsuit for not being brought to Pittman at all, arguing that the U.S. Chamber of Commerce filed the lawsuit in federal court in Texas and therefore would ultimately fall under the jurisdiction of the 19-judge Fifth Circuit Court of Appeals. appointment.

“The U.S. Chamber of Commerce and the big banks they represent undermine our justice system by choosing venue in the court of least resistance and doing everything they can to avoid having their lawsuit heard by a fair and neutral federal judge,” Zelnick said. “U.S. It’s time for the Chamber of Commerce to stop clogging the courts with baseless lawsuits designed to benefit corporate CEOs at the expense of working families – and for the judiciary to stop legalizing big industry’s purchase of space.”

The 5th Circuit's handling of the case has also been criticized, with Trump-appointed judge Don Willett not recusing himself despite owning tens of thousands of dollars in Citigroup stock. Although Willett argued that Citigroup is not a party to the case, it belongs to the industry group and any ruling on credit card fees would have a significant impact on the bank. According to the latest public information, all Fifth Circuit judges have invested a total of $745,000 in credit card or credit-issuing companies.

“Judge Willett's refusal to recuse himself, and the lack of transparency in his rationale, reinforces the need to More judicial ethics reforms are needed to ensure that ordinary Americans and governments have a level playing field when agencies go to court to harm corporate interests.





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