US CFPB asks to pause Comerica enforcement action

(Reuters) -The U.S. Consumer Financial Protection Bureau, a watchdog agency that the Trump administration has largely closed down, asked a federal court on Monday to issue a stay in its enforcement action against Comerica Bank, court papers showed.

In the final days of former President Joe Biden's administration, the agency in December had accused the lender of "systematically" failing millions of disabled and older people receiving federal benefits.

The agency last week dropped five enforcement actions including a case against Capital One , marking an unprecedented mass dismissal.

Representatives for the CFPB and the bank did not immediately respond to requests for comment but in court papers, CFPB Chief Legal Officer Mark Paoletta said the agency was considering next steps.

"There is good cause to stay this case to allow new agency leadership time to review the matter," Paoletta said, noting that Comerica last month had filed a motion to dismiss.

In November, Comerica sued the CFPB in Texas federal court over the same matter, arguing that the agency had overstepped its authority. That case remains pending.

(Reporting by Douglas Gillison; Editing by Richard Chang)

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