We recently reported that on August 15, 2024 Solo Funding, Inc. (“Solo”) filed a motion to dismiss in its entirety an enforcement complaint brought by the CFPB against Solo (a company that facilitates peer-to-peer small dollar lending) in Federal District Court for the Central District of California (Los Angeles). The motion to dismiss was predicated in part on Solo’s argument that since September, 2022, the CFPB has been unlawfully funded by the Federal Reserve Board because the Federal Reserve System incurred losses starting then. On August 16, 2024, the CFPB notified the Court that on or before August 26, 2024, it will be filing an amended complaint (which it is able to do as a matter of right and without approval of the Court). The filing of the amended complaint will moot Solo’s motion to dismiss which Solo will presumably re-file shortly after the amended complaint gets filed. 

I would expect that our first opportunity to ascertain the CFPB’s argument in opposition to the unlawful funding argument will be when it files its opposition to the motion to dismiss the enforcement action against Populus Financial Group, Inc. on August 31, 2022. 

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