Companies in immigration bond business seek summary judgment in CFPB suit

By Amanda Thomas | May 22, 2018

WASHINGTON (Legal Newsline) – Two Virginia companies that are attempting to block an investigation by the Consumer Financial Protection Bureau have filed a motion for summary judgment.

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WASHINGTON (Legal Newsline) – Two Virginia companies that are attempting to block an investigation by the Consumer Financial Protection Bureau have filed a motion for summary judgment.

Nexus Services Inc. and Libre by Nexus Inc. filed the motion on Jan. 30 in the U.S. District Court for the District of Columbia. The companies alleged that CFPB exceeded its authority in its investigation "over bond transaction services and possibly deceptive or questionable practices to extend credit in violation of the Consumer Financial Protection Act," as Legal Newsline previously reported.

The plaintiff companies are in the business of assisting detained persons in obtaining immigration bonds.

In a lawsuit filed in October 2017, the plaintiffs challenged the constitutionality of the federal agency’s governing structure and allege a CFPB civil investigative demand (CID) for company documents is overly broad. 

The CFPB has also filed suit against the companies, contending that they failed to follow through on the CID for information related to an agency inquiry. 

But the motion states that the companies don’t extend credit, make loans or post bonds. Instead, when a person is being held in federal custody on immigration charges, the companies help to secure the person’s release using monitoring technology that relies on a Global Positioning System. 

The security and monitoring services, which come with a monthly fee, allow detainees to be released by family members pending their legal hearings.

“Immigration bonds have historically difficult to obtain due to the lack of resources available to either the detainee or his or her family members, and due to the perceived high risk of the detainee failing to comply with the terms of a bond,” the motion said. 

The suit against CFPB claims the agency requested a “complete listing of all program participants and employees that Nexus has ever had, including detailed information regarding payments, contact information and more.” 

In its motion for summary judgment, Nexus argues that the CFPB lacks supervisory and enforcement authority. 

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