On June 9, the CFPB filed a motion to vacate a stay of proceedings and reopen a case that had been administratively closed since February. In response to the CFPB’s request, the court scheduled a hearing on July 11. The motion followed the CFPB Acting Director’s May 16 authorization to proceed with the enforcement action, which had been stayed due to changes in uncertainty in Bureau leadership following the new administration. The Bureau planned to propose a new schedule for refiling motions that were denied without prejudice during the stay. The Bureau argued there has been no delay or prejudice to defendants, as the motion was filed within four months of the stay being granted.
As previously covered by InfoBytes, the CFPB filed a proposed stipulated judgment against the defendants, a student loan debt-relief company and its owner, to resolve its 2021 action alleging that they charged borrowers more than $3.5 million in unlawful advance fees. The Bureau alleged that between 2015 and 2019, the defendants violated the Telemarketing Sales Rule and the CFPA by unlawfully marketing and enrolling borrowers in the company’s purported debt relief services (covered here).
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