On May 7, the U.S. District Court for the District of Columbia dismissed without prejudice a legal challenge to a supervisory order issued by the CFPB against a large tech company (the plaintiff). The parties entered a joint stipulation to dismiss the lawsuit following the CFPB’s decision to cease supervision of the tech company’s payment platform. As previously covered by InfoBytes, the CFPB had ordered the plaintiff to submit to supervision after the Bureau alleged the conduct of plaintiff’s peer-to-peer payment subsidiary posed “risks to consumers.” In response, the company sued the CFPB in federal court on December 6, 2024, challenging the CFPB’s decision to exercise its supervisory authority. The court stayed the litigation on February 7 pending a review of the order by the CFPB’s new leadership (as covered here).
The CFPB’s order against the tech company from November 8, 2024, was withdrawn after the discontinuation of the plaintiff’s peer-to-peer payment product, which was the focus of the proceeding. The plaintiff’s peer-to-peer product had been discontinued as of June 2024.
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