Townstone Financial Settles CFPB Redlining Claims for Small Penalty

Written By Richard Horn

Our firm’s client Townstone Financial has settled the CFPB’s fair lending lawsuit against the company for only a $105,000 CMP. The sum is small compared to the CFPB’s past multi-million dollar settlements in this area. And CFPB dismissed Townstone’s owner with prejudice.  While I firmly believe we were correct on the law, this settlement puts the case behind the company and its owner. 

We fought hard in this case, with multiple motions to dismiss at the district court level and taking the fight to the appellate court level. I think this settlement amount shows the benefits of having a legal team that will fight for you. Congrats to our legal team, led by Steve Simpson at the Pacific Legal Foundation.

For PLF and Townstone’s official statement, see here.

The CFPB’s press release is here.

Please email me at rich@garrishorn.com if you would like to discuss or have any questions.

Richard Horn
Previous

FTC Sues Cash Advance App for Alleged Deceptive Practices
Next

CFPB’s Open Banking Rule: Consumer Access to Data, Compliance Obligations for Banks and Fintechs