The Consumer Financial Protection Bureau has decided not to file a lawsuit against a collection agency that collects on payday loans, despite getting the green light to move forward from former director Richard Cordray before he resigned in November, Reuters reported on Friday.
Mick Mulvaney, the acting director of the CFPB, has decided not to move forward with the suit against National Credit Adjusters and three other payday lenders, according to the report.
The actions could have returned as much as $60 million to consumers.
According to the report, Cordray was ready for the CFPB to file suit against the agency, which collects on unpaid payday lending debts on behalf of lenders operating on tribal lands. According to the CFPB, the collection agency “had no right” to collect on those loans. A lawyer for NCA confirmed that any action that was set to be taken against the agency is “dead.”
NCA had been accused of wrongly collecting $50 million, of which $45 million was going to be returned to consumers, according to the report.
Cases against three other payday lending operations for engaging in illegal collection activities, are also on the chopping block.
The CFPB has not brought a single enforcement action since Mulvaney took office more than four months ago.
