Major credit card lawsuit stays in Mississippi court

As the holidays wrap up, Mississippi residents will likely begin reviewing their credit card statements. The holidays are definitely a time of year when individuals turn to their credit cards for financial support. This decision, however, can lead to burdensome credit card debt - particularly if a credit card company engages in practices that significantly increase the amount of money owed.

A recent post here explained the possibility that some credit card companies may be overcharging their customers. In fact, the Mississippi Attorney General filed a lawsuit to challenge the charging practices of six major credit card companies.

There has been a recent procedural decision issued in the case. The credit card company defendants in the action attempted to remove the case from state to federal court. The federal court reversed and remanded the case back to Mississippi state court. The federal court held that the credit card companies failed to meet their burden in establishing that it was appropriate for the matter to proceed in federal court. In particular, the court found that the defendants failed to demonstrate the necessary individual amount of controversy.

Federal civil procedure law carves out specific situations in which a federal court will have jurisdiction over a case. These include, but are not limited to, the following: the case involves a question under federal law, or the matter involves residents from different states and the individual amount in controversy is greater than $75,000.

In the pending major credit card case, the companies attempted to trigger federal court jurisdiction under this latter prong, but failed to make out their claim. As a result, the case will continue in state court, which will likely be more aware of the interests of Mississippi residents. The action will hopefully result in relief for those with credit card debt in Mississippi.

Source:, "Lawsuit against credit card companies over interest rates remanded to district court," Holland Phillips, Dec. 24, 2013

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