The Consumer Financial Protection Bureau (CFPB) has decided to drop the lawsuit it had filed against Heights Finance and its affiliates. The American Financial Services Association (AFSA) expressed satisfaction with this decision, describing the suit as "ill-conceived." The legal action was initiated in August 2023 under the leadership of former CFPB director Chopra.
According to AFSA, Heights Finance has consistently operated within the boundaries of state laws, being both licensed and examined accordingly. The organization criticized the CFPB's attempt to portray Heights' standard business practices, which comply with the Truth in Lending Act and other relevant regulations, as improper.
AFSA highlighted that the allegations lacked a foundation in the specific laws that govern CFPB's operations. They argued that this case exemplified an effort by the CFPB to create new regulations through enforcement actions. AFSA commended the bureau's current leadership for resolving this issue, seeing it as a step towards more consistent and transparent oversight of consumer financial products and services.