An investigation by the Consumer Financial Protection Bureau (CFPB) into the practices of a Virginia-based bail-bonds firm has been suspended, according to a release by the company issued Monday.
Nexus Services Inc., of Verona, Va., in a press release, stated that the CFPB suspension of the investigation into the firm’s practices “occurred in open court when lawyers from the CFPB agreed to suspend the investigation, making a motion for a preliminary injunction filed against the agency by the Nexus plaintiffs moot.”
According to the release, CFPB agreed to suspend its investigation of the firm “until the lawsuit brought by Nexus against the CFPB has been resolved by a federal judge.”
Nexus offers GPS tracking to detained immigrants so they can be released while awaiting court hearings. According to news reports, the company has nearly 30 offices throughout the country.
In August, CFPB issued a civil investigative demand (CID) to Nexus “seeking information about its products and operations.” The bureau said that the CID was issued “to determine whether persons who provide products or services related to bonds posted on behalf of detainees are extending credit or offering to extend credit.”
The agency added that the purpose of the investigation was also to determine whether the marketing or selling of those products or services to consumers or enforcing their terms and conditions, resulted in the engaging in unfair, deceptive, or abusive acts and practices.
The agency said another purpose of the investigation was to determine whether action to obtain legal or equitable relief would be in the public interest. The CID included eight interrogatories, four requests for written reports, nine requests for documents, and four topics for hearing, according to CFPB.
Nexus (and its firm Libre by Nexus), in September challenged the investigation, and petitioned CFPB to set aside or modify the CID. Then-CFPB Director Richard Cordray denied the request. The firm then took the case to federal court in Washington where CFPB ultimately agreed to suspend the investigation, according to the firm’s press release.
Cordray resigned Nov. 24; President Donald Trump appointed Mick Mulvaney, director of the White House Office of Management and Budget (OMB) acting director. On Nov. 27, Mulvaney said in a press availability that the agency was freezing, for 30 days, all hires and policymaking.