- within Insolvency/Bankruptcy/Re-Structuring and Cannabis & Hemp topic(s)
On November 20, 2025, the CFPB notified staff that it will begin transferring its remaining enforcement lawsuits and other pending litigation to the Department of Justice. The shift comes as the agency anticipates running out of operating funds under the Consumer Financial Protection Act (previously discussed here).
The DOJ will assume responsibility for the limited number of enforcement actions and rulemaking challenges that are still active in federal courts. CFPB staff were informed that the Bureau will coordinate the handoff of district-court and appellate matters, while open investigations will remain with the agency for now. The status of ongoing litigation, internal staffing assignments, and transition timelines will be determined as the transfer process unfolds.
Putting It Into Practice: The slow unwinding of the CFPB continues, and the litigation transfer highlights just how limited the agency's enforcement capacity has become (previously discussed here and here). At the same time, press reports this week indicate that enforcement staff have been told that certain dormant matters are being cleared to move forward. How this apparent shift fits into the Bureau's evolving posture — and its coordination with DOJ — remains unclear. Companies subject to active or potential CFPB enforcement should closely monitor updates regarding the transition and track DOJ communications to understand how incoming teams may approach case strategy, negotiations, and remedies.
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