On March 10, the U.S. District Court for the Northern District of Texas denied the CFPB’s motion to pause its lawsuit against a bank, stating the Bureau failed to explain how a stay in litigation “would be in the interest of justice.” The lawsuit, which was filed in December 2024 (and under prior CFPB leadership), alleged the bank mismanaged a government benefit card program. Earlier this month, the CFPB moved to stay the litigation for 90 days to give new agency leadership time to review the case. The court disagreed with the CFPB, pointing to several arguments the bank made in its opposition, including that a stay would “prolong the reputational harm [the bank] suffers from the pending lawsuit,” and would provide the CFPB “with an ‘unfair advantage’ by giving the CFPB four months to prepare” its response to the bank’s motion to dismiss. The lawsuit was one of several pending lawsuits the CFPB has moved to either dismiss or pause under new leadership (covered here, here and here).

This bank also sued the CFPB last year. As previously covered by InfoBytes, the bank alleged the CFPB overstepped its statutory authority while enforcing the CFPA and the EFTA.

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.