CFPB Enforcement Actions Grind to a Halt as Supreme Court Looms

The federal consumer finance watchdog marked its slowest quarter for enforcement actions in six years, with many investigations and lawsuits on hold waiting for the US Supreme Court.

Lower courts have paused Consumer Financial Protection Bureau enforcement actions against defendants such as money transmitter MoneyGram International Inc., as well as efforts to execute civil investigative demands for documents or testimony until the Supreme Court weighs in on whether the CFPB’s funding is constitutional.

Some smaller companies cite the forthcoming decision as they refuse to cooperate with CFPB probes, agency insiders and defense attorneys say.

The one lawsuit brought in ...