(Reuters) – The US Top Watch Dog for Consumer Finance has asked the federal court to leave the New York State Attorney General as the sole plaintiff and the New York State Attorney General as the sole plaintiff and withdraw from the federal court, according to court documents.
Under then-President Joe Biden, agents joined New York, accusing cash transfer companies of repeated and unfair violations, and violating federal rules designed to make it easier for people to send money to friends and family outside the United States.
In a motion filed Monday, the Consumer Financial Protection Agency, which has withdrawn from a pending enforcement case amid the Trump administration’s efforts to dismantle the agency, said it cannot seek fire because New York officials had also sued.
CFPB and MoneyGram did not immediately respond to a request for comment Tuesday. A representative from the New York State Attorney General’s Office said the agency intends to continue pursuing the lawsuit in the absence of the CFPB.
The lawsuit has faced a long delay, but the US Supreme Court has argued that the legal challenge for the constitutionality of the CFPB funding structure has passed through the courts, the US Supreme Court has finally refused last year.
The CFPB has now dismissed at least nine of the two dozen pending enforcement lawsuits when the Trump administration took control in February. Continuing litigation over Experian and Comerica Bank.
(Reporting by Douglas Gillison, Editing by Bill Velcrott)
