On February 7, the U.S. SDNY denied a lender’s request for leave to file a motion to stay litigation brought by the CFPB, but ordered the CFPB to inform the court whether it continues to prosecute the action. The underlying litigation involved allegations that the defendant violated the Military Lending Act. Prior to the court’s order, the defendant had submitted a letter to the court requesting leave to file a motion to stay the litigation, citing a directive issued by the Acting Director of the CFPB indicating that the Bureau would seek a pause in all ongoing proceedings. The letter noted that counsel for the defendant was told that “‘CFPB leadership’ opposes the stay” in the present litigation since the defendant’s motion to dismiss was fully briefed and there is nothing currently for the parties to do.

The court declined defendant’s request for leave to file a motion to stay without prejudice because the letter failed to include a briefing schedule, as required by the court’s local rules. The court instead ordered the CFPB to “file a letter stating whether it intends to continue prosecuting this action” by February 14. The court’s order provides that after the CFPB files that letter, the defendant may either renew its request for leave to file a motion to stay or indicate that the defendant no longer intends to file such a motion.