9th Circuit Vacates CFPB’s $8 Million Judgment Against Mortgage Service Telemarketer

The U.S. Court of Appeals for the Ninth Circuit recently vacated an $8 million judgment it had obtained against a mortgage service telemarketer so that the district court can consider the Fifth Circuit’s opinion in Community Financial Services Association of America, Ltd. v. CFPB, 51 F.4th 616 (5th Cir. 2022). 

The CFPB filed suit against the telemarketer for allegedly violating the Consumer Financial Protection Act by engaging in deceptive practices.  In the Community Financial Services case, which WBK reported on here, the Fifth Circuit held that the CFPB’s funding structure violates the Constitution’s Appropriations clause.  The Ninth Circuit did not opine on the merits of the appeal, but vacated the district court’s judgment to “allow[] [the district court] to reassess the case under the changed legal landscape since its initial order and opinion.”