Wednesday afternoon, the CFPB announced it had reviewed its case against Townstone...
Wednesday afternoon—after more than seven years of legal strife resulting in a six-figure fine for our client, Townstone Financial—new leaders at the Consumer Financial Protection Bureau did something remarkable: They called the case against Townstone “a flagrant misuse of government resources to destroy a small business” and sought to vacate the settlement and return the $105,000 fine paid by Townstone.
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Following an internal investigation launched under the new administration, CFPB officials determined that their case—alleging racial discrimination against Barry Sturner and his small mortgage lending firm, Townstone Financial—was both legally and factually baseless.
The investigation also revealed that CFPB staff had misled their superiors and targeted Townstone for constitutionally protected speech. The CFPB’s own press release
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called the case against Townstone “abusive” and “unjust.”
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Barry told
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PLF when we joined his case years ago that his business was “on life support” because of the CFPB’s accusations.
“The government has denigrated Townstone’s reputation, my reputation, and our 20-year history of helping people,” Barry said. “That’s what I’m trying to get back.” The CFPB’s complete reversal this week is a good start.
You can find more information about Barry’s saga with the CFPB on our case page
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, or read the Joint Motion to Vacate Judgment
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that was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division.
Thank you for standing with us and Townstone throughout this fight.
Onward,
Steve Simpson | Director of Separation of Powers Litigation
Pacific Legal Foundation
P.S. Thanks to the generous support of our donors, we defend Americans like Barry Sturner 100% free of charge whenever their constitutional rights are violated. Visit our website to learn more about how you can contribute to our fight.
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