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In another significant litigation setback for the Consumer Financial Protection Bureau, a U.S. District Court in Atlanta imposed discovery sanctions against the Bureau and dismissed all claims against payment processors alleged to have aided and abetted an unlawful debt collection scheme. Cases brought by the CFPB’s Division of Enforcement have seen the imposition of significant levels of damages as well as the imposition of severe penalties. More recently, however, some litigants have pushed back with success against the CFPB, demanding that the Bureau be held to its burden of proving the factual and legal bases of its claims.

CFPB Case Against Payment Processors Dismissed: Court Sanctions Bureau for Non-Responsive Discovery

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In another significant litigation setback for the Consumer Financial Protection Bureau, a U.S. District Court in Atlanta imposed discovery sanctions against the Bureau and dismissed all claims against payment processors alleged to have aided and abetted an unlawful debt collection scheme. Cases brought by the CFPB’s Division of Enforcement have seen the imposition of significant levels of damages as well as the imposition of severe penalties. More recently, however, some litigants have pushed back with success against the CFPB, demanding that the Bureau be held to its burden of proving the factual and legal bases of its claims.Read our <a href="https://media2.mofo.com/v3/assets/blt5775cc69c999c255/blt5ad6a89335628489/6273ebe123c6cf2a1c3b0d48/170830-cfpb-case-dismissed.pdf">client alert</a>.

CFPB Case Against Payment Processors Dismissed: Court Sanctions Bureau for Non-Responsive Discovery