On February 21, the CFPB voluntarily dismissed its case against an online lending platform, ending a suit filed in May 2024. As previously covered by InfoBytes, the CFPB sued the platform last spring, alleging it violated the CFPA and the FCRA. In February, the CFPB filed an emergency ex parte application to stay proceedings in the case (covered here). The stipulation filed Friday dismissed the action entirely, with prejudice, with each party bearing its own costs, expenses, and attorneys’ fees, while waiving all rights to appeal.
In its original complaint, the CFPB alleged the platform misled borrowers with “advertising and disclosures that falsely tout no-interest loans when, in fact, consumers are routinely subject to fees that result in an exorbitant total cost of credit”; serviced and collected on void or uncollectible loans; and attempted to coerce payment by falsely threatening to report borrowers to credit bureaus.
