Washington, D.C. (May 25, 2021) - On
March 3, 2021, the Consumer Financial Protection Bureau (CFPB or
Bureau) filed a lawsuit that has significant implications
for the payment processing industry. The complaint alleges that
BrightSpeed Solutions, Inc. and its founder and former chief
executive officer, Kevin Howard, (collectively BrightSpeed)
knowingly processed payments for companies that purported to offer
technical-support services and products over the internet, but
actually tricked consumers into purchasing expensive and
unnecessary software or services. The Bureau's action is
based on the CFPB's broad authority over unfair, deceptive,
or abusive acts or practices (UDAAP) in violation of the Consumer
Financial Protection Act of 2010, and deceptive telemarketing
practices in violation of the Telemarketing Sales Rule. The case
suggests a new CFPB aggressiveness in enforcement actions against
payment processors that should be a signal for heightened awareness
in the
