Recently, the CFPB has been actively dismissing or withdrawing from multiple cases following stays and joint dismissals. These include disputes originated under the previous administration involving banking associations, student loan trusts, a subprime auto lender, and a peer-to-peer payment provider.

CFPB dismisses UDAAP exam manual litigation

On April 30, the U.S. Court of Appeals for the Fifth Circuit, acting on the parties’ joint stipulation, dismissed with prejudice the CFPB’s appeal of a 2023 ruling by the U.S. District Court for the Eastern District of Texas that struck down the Bureau’s effort to expand its UDAAP examination manual to cover alleged discriminatory conduct, following a challenge by several banking associations. As previously covered by InfoBytes, the 5th Circuit granted a stay to give the CFPB Acting Director Russell Vought time to review the CFPB’s position in this litigation. The dismissal was made voluntarily by both parties, who agreed that each would bear its own costs.

CFPB dismisses case against pre-2008 student loan trusts

On April 25, the U.S. District Court for the District of Delaware dismissed with prejudice a case brought by the CFPB against a group of pre-2008 student loan trusts alleging, among other things, that the defendants filed lawsuits against consumers for student loan debt that they could not prove was owed or was outside the applicable statute of limitations. The dismissal came from a joint stipulation voluntarily dismissing the case in its entirety, with each party agreeing to bear its own costs, expenses and fees. As previously covered by InfoBytes, last year, the U.S. Court of Appeals for the Third Circuit remanded the case to the District Court, after determining that the trusts fell within the purview of the CFPA, and that the CFPB was not required to ratify the underlying action.

CFPB leaves case against auto lender, New York Attorney General remains

On April 29, U.S. SDNY granted the CFPB’s consent motion to withdraw as a plaintiff in a case against an auto finance company accused of misrepresenting the cost of credit and deceiving low-income consumers into taking out high-interest loans on used vehicles. As previously covered by InfoBytes, the CFPB sought to withdraw as a plaintiff, leaving the State of New York, represented by Attorney General Letitia James, as the remaining plaintiff.

CFPB favors mediation in predatory financing case

On April 29, the CFPB and several development companies filed a joint motion to stay all pending deadlines in a case pending before the U.S. District Court for the Southern District of Texas. The parties jointly requested a 90-day stay to focus on mediation efforts, aiming to conserve resources and judicial time amid ongoing discovery disputes. If mediation fails, the parties will submit a status report and an updated proposed scheduling order. As previously covered by InfoBytes, the CFPB alleged the defendants discriminated against Hispanic consumers by targeting them with predatory financing and other unlawful conduct in this case.

CFPB opts to dismiss fight against peer-to-peer payment provider

On April 21, the CFPB and a peer-to-peer payment provider filed a joint stipulation to dismiss with prejudice a case pending before the U.S. Court of Appeals for the District of Columbia Circuit. Each party agreed to bear its own costs.

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