Consumer Agency Seeks to Hold South Carolina Company in Contempt
Thursday, June 22nd, 2017
The nation’s top consumer regulatory agency is seeking to hold a South Carolina housing finance company in contempt for moving too slowly to respond to a judge’s order that it turn over documents and audio recordings.
A federal judge on Tuesday referred the matter to a United States magistrate judge for a hearing.
The unusual legal maneuver by the agency, the Consumer Financial Protection Bureau, to hold National Asset Advisors and a related company in contempt shows that the agency is proceeding with an investigation into businesses associated with the sale of homes to lower-income borrowers with seller financing.
The move also indicates that the bureau, which was established after the 2008 financial crisis, is not backing down even as the Trump administration and Republicans in Congress support proposals that would greatly reduce its enforcement powers. The agency has sought to enforce in court compliance with subpoenas in about eight matters, but this is the first time it has sought to hold a company in contempt for not complying with a judge’s order.
See more at the NYT.