CFPB ‘Push the Envelope’ Memo in Enforcement Gets Early Test

A debt settlement services provider asked a federal judge to dismiss a Consumer Financial Protection Bureau enforcement case, citing a recent memo that says the CFPB will take a new approach on such questions.

The Jan. 23 memo by budget director Mick Mulvaney, whose role as CFPB acting director is in dispute, said the CFPB will no longer “push the envelope” in its efforts to protect consumers. However, the memo also indicated that debt collection-related matters will continue to be an important focus.

Freedom Debt Relief, which has been sued by the CFPB, asked Magistrate Judge Elizabeth D. LaPorte of ...