CFPB Stops Investigation Against Nexus Services, Inc.
WASHINGTON, Dec. 4, 2017 /PRNewswire/ -- The Consumer Financial Protection Bureau suspended its investigation today of Nexus Services, Inc., the Verona, Virginia-based firm that has freed more than 25,000 mothers and fathers from immigration detention since 2012. The suspension of the investigation occurred in open court when lawyers from the CFPB agreed to suspend the investigation, making a motion for a preliminary injunction filed against the agency by the Nexus plaintiffs moot.
The CFPB, a watchdog agency created by the 2010 Dodd-Frank Act, was investigating Nexus Services, Inc. to discover if it had jurisdiction over the company or not. The Dodd-Frank Act bars the CFPB from regulating insurance products, like immigration bonds, which are solely regulated by state insurance commissioners. Nexus is simply a service provider for people who are clients of sureties issuing immigration bonds, and it never lends money. Nevertheless, the Bureau has wandered outside its jurisdiction before and been slapped down, most recently when it tried to regulate car loans and was found by a federal court to be beyond the scope of its legal authority. Similarly, Nexus Services, Inc. contends the Bureau is outside its jurisdiction in trying to regulate a service provider for people with immigration bonds.
In the United States District Court for the District of Columbia, before Judge Amy Berman Jackson, Bureau lawyers agreed to suspend the investigation of Nexus Services, Inc. until the lawsuit brought by Nexus against the CFPB has been resolved by a federal judge. "It's the right thing to do," said Mike Donovan CEO of Nexus Services, Inc., "and it's about time. My company has already spent tens of thousands of dollars dealing with the CFPB just to get to this point. That money could have been better spent reuniting families separated by immigration detention and helping immigrants start a new life here in America."
In addition to its primary work of helping immigrants, Nexus Services, Inc. gives away millions of dollars a year for college scholarships, free homes for deserving rural people, sponsorships of more than a dozen baseball, basketball, softball, soccer teams up and down the Shenandoah Valley. Nexus Services, Inc. also funds civil rights lawsuits for people unable to provide for their own legal defense.
"This is a win for Nexus Services, and all today's ruling demonstrates why it is always important to stand up and fight when the government threatens to violate your rights," Donovan said about today's outcome. "Today is an important day for all Americans, small business owners, and above all, the clients Nexus serves," Donovan said.
Nexus Services, Inc.'s case could set an important precedent that would be helpful to thousands of small businesses across the country. If Nexus wins, small businesses will be safe from the reach of the CFPB and its costly demands for private information about employees and clients. The full complaint and exhibits can be found here: Nexus Complaint against CFPB.
If CFPB wins, millions of small businesses will have to hire accountants costing tens of thousands of dollars to go through corporate records and hand over private information about all past and present staff and customers. This will violate the privacy rights of millions of American citizens.
Standing on the principles our Constitution and privacy rights, Nexus Services, Inc. CEO Mike Donovan said: "This is an important constitutional turning point. If CFPB gets its way, privacy will be dead in America."
About Nexus Services, Inc.:
Nexus Services, Inc. is a privately held company, based in Verona, Virginia. Nexus Services, Inc. is the parent company of a unique family of companies, both for-profit and charitable, that deliver cutting-edge products and services to meet the needs of migrants and their families, including free legal advocacy and making financial commitments to free the undocumented from immigration detention.
CONTACT:
Nexus Services Inc.
Jen Little, Director of Public Relations
(540) 255-9492 / [email protected]
SOURCE Nexus Services, Inc.
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