The restitution checks are tied to a $4.2 million settlement reached in 2023 with Prehired for engaging in illegal student lending services.

The court on May 16 heard the government’s appeal against a preliminary injunction that prohibited it from laying off more than 1,400 bureau employees through a reduction in force process.

The appeals court later this month will consider the separation of powers and other arguments raised by the parties involved.

Servicing issues once again took the lead for the most mortgage-related complaints submitted to the CFPB in the first quarter of 2025. (Includes two data tables.)

The move continues a recent pattern of withdrawing the bureau from lawsuits under new leadership at the CFPB.

The Trump administration’s planned reduction-in-force would terminate more than 1,400 employees at the bureau, reducing the agency’s workforce to around 200 employees.

The bureau is entangled in a lawsuit that alleges the agency authorized DOGE employees to access computer systems containing sensitive information.

The new preliminary injunction allows for the Trump administration to fire CFPB employees and issue a reduction-in-force to employees, as long as the administration abides by certain provisions.

An appeals court judge appeared to favor of authorizing a limited preliminary injunction against the Trump administration in a lawsuit brought by the National Treasury Employees Union.

A judge granted the bureau’s request to withdraw from the 2022 lawsuit, but the case will move forward.