Federal Judge's Decision May Bind CFPB To Previously Withdrawn Guidance Documents

U.S. District Court Judge Barbara J. Rothstein granted, in part, the CFPB's motion to withdraw its amicus brief filed by the Biden-era CFPB regarding the "proper interpretation of the Fair Debt Collection Practices Act's prohibition on the collection of unauthorized amounts." Although the brief will be withdrawn, its substance may still influence the ultimate resolution of the matter.

Salom et al. v. Nationstar Mortgage LLC, pending before the U.S. District Court for the Western District of Washington, challenged the legality of fees charged for mortgage payoff statements. The CFPB previously defended the Fair Debt Collection Practices Act (FDCPA) claim brought by an affected homeowner, emphasizing the fact that Nationstar could be liable for charging fees that are not "expressly authorized" by the FDCPA, a position published in the agency's Pay-to-Pay Advisory Opinion. However, the Trump-era CFPB has since withdrawn the Pay-to-Pay Advisory Opinion. In light of the