CFPB Drops Another Consumer Lawsuit as Trump Administration Scales Back Corporate Enforcement

The Consumer Financial Protection Bureau (CFPB) continues to position itself at the forefront of the Trump administration’s broader strategy to ease up on corporate prosecutions, dismissing yet another consumer protection lawsuit on Wednesday—this time against Reliant Holdings Inc. and its CEO, Robert Kane.

The case, originally filed in September in the U.S. District Court for the Western District of Pennsylvania, accused Reliant—operating under the name Horizon Card Services—of misleading customers into thinking they were signing up for general-use credit cards. In reality, the CFPB alleged, customers were being enrolled in costly lines of credit that could only be used for purchases at Reliant’s proprietary online marketplace, the Horizon Outlet. The lawsuit charged the company and Kane with violations of the Consumer Financial Protection Act of 2010.

The Bureau’s decision to dismiss the case with prejudice means the same charges cannot be refiled. In a statement provided by his attorney, Kane expressed relief at the conclusion of the matter, saying, “I have great respect for the role that government agencies play in protecting consumers and maintaining trust in the financial system. At the same time, I have consistently and respectfully disagreed with the Bureau’s decision to file this case. I believe it was rooted in a fundamental misunderstanding of how our services work and the positive impact they’ve had on the lives of the people we serve.”

The CFPB has not yet issued a public comment regarding the dismissal.

This marks the latest in a string of withdrawals by the Bureau since President Trump began his second term in January. Earlier dismissals include cases against Comerica, Early Warning Services—the operator behind the Zelle payments network—and its banking partners, as well as Capital One and various fintech firms. In another notable instance, the CFPB not only moved to vacate a long-standing case against Townstone Financial but also petitioned the court to permit the return of a $100,000 penalty already paid by the company.

The pattern reflects a broader rollback in corporate regulatory enforcement under the Trump administration, which has also influenced the Department of Justice. The DOJ, at the president’s direction, has suspended all new enforcement actions under the Foreign Corrupt Practices Act (FCPA) for six months and is reviewing current monitorships and related lawsuits. These moves appear designed to recalibrate the federal approach to white-collar crime, shifting from aggressive prosecution to more lenient oversight.

However, not all officials are on board. California Attorney General Rob Bonta issued a pointed reminder that the state remains committed to enforcing anti-corruption laws independently. “Despite the Trump Administration’s actions, I remind businesses in California that bribing foreign officials is illegal under California law and will not be tolerated,” Bonta said.

The administration’s hands-off approach is also making waves in the cryptocurrency sector. The Securities and Exchange Commission (SEC) has either dropped or renegotiated several lawsuits targeting crypto firms, while Democrats in Congress warn that disbanding the DOJ’s cryptocurrency task force could open the door to unchecked misconduct in the digital finance space.

By fLEXI tEAM