In one alleged instance, Credit Acceptance approved a $260-a-month loan for a mother of two who made just $950 per month, and whose vehicle ended up being repossessed twice.
The regulators argued that the CFPB’s funding status had no bearing on whether their lawsuit could proceed.
But the judge said that while the public had an interest in seeing consumer protection laws enforced, “any potential harm to the public caused by delaying this action is outweighed by the benefit to consumers in proceeding in a streamlined fashion.”
The CFPB declined to comment. James’ office did not immediately respond to requests for comment.
A Supreme Court decision in the funding case is expected by next June.
Last December, another judge cited that case in staying a lawsuit by the CFPB and James against MoneyGram International over remittance transfers, which let people in the United States send money to family and friends elsewhere.
