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District Court rules on CFPB’s motion to bar credit agency executive’s advice of counsel defense

August 9, 2024

On July 26, the U.S. District Court for the Northern District of Illinois granted in part and denied in part a discovery-related order in a case brought by the CFPB against a large credit reporting company and its executive for allegedly violating the terms of a 2017 consent order. The CFPB’s motion asked the court “to bar [the executive] from claiming or relying on an advice-of-counsel defense as a penalty for violating the court’s December 26, 2023 discovery order.” The CFPB’s motion was prompted by the executive’s alleged failure to produce certain documents and interrogatory responses following a discovery order, based on a claim of privilege. While the court declined to permanently bar the executive from asserting an advice of counsel defense, it concluded that the executive “may not assert the [attorney-client] privilege to avoid producing evidence related to his advice-of-counsel defense insofar as he intends to assert such a defense.” The court made clear that the executive must supplement his answers to certain interrogatories if he intends to rely on the advice of counsel defense.