Banking and Finance Law Daily Transfer granted to subject of CFPB subpoena in case against credit repair company
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Thursday, September 17, 2020

Transfer granted to subject of CFPB subpoena in case against credit repair company

By J. Preston Carter, J.D., LL.M.

A marketing partner of a telemarketing center sued by the Bureau could transfer the Bureau’s motion to compel production where delay was not a motive to transfer and the Bureau expressed a willingness to transfer.

The federal district court in Tallahassee granted OLP.com, Inc.’s request to transfer a motion to compel production filed by the Consumer Financial Protection Bureau to the federal district court in Utah where the action underlying the motion to compel is being heard. The production dispute relates to a lawsuit filed by the Bureau against Progrexion Marketing, Inc. OLP is a marketing partner of Progrexion that live-transferred consumers to Progrexion’s telemarketing call centers. OLP failed to fully comply with subpoenas issued by the Bureau, and the Bureau moved to compel production.

OPL argued in its initial response that the motion should be transferred from the Florida court to the Utah court where the Bureau’s case against Progrexion is being heard, because the Utah court is better positioned to resolve relevancy objections raised by OLP in response to the subpoena (see Banking and Finance Law Daily, Sept. 11, 2020). OLP also contends that some of the production sought "may implicate the attorney-client privilege" of one of the defendants in the underlying action.

In its order granting OPL’s request, the court said the Bureau’s primary basis for objecting to the transfer request was that OLP was seeking to delay its obligation to comply with the subpoena. However, the court said, "the Bureau waited some six months to file the motion to compel." The court noted that OLP responded to the Jan. 21, 2020, subpoena on Feb. 4, 2020, and over the next few weeks counsel attempted to confer and resolve the dispute. "Yet the Bureau waited until August 25th to file this motion." Thus, the court held, the argument that transfer should be denied because of delay is rejected. Moreover, the court added, the Bureau has expressed a willingness to transfer the motion. It concluded by stating, "Considering that willingness along with the consent of OLP, the request for transfer is granted."

Companies: OLP.com, Inc.; Progrexion Marketing, Inc.

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