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Case Name Consumer Financial Protection Bureau v. Nexus Services, Inc. IM-VA-0011
Docket / Court 5:21-cv-00016-EKD ( W.D. Va. )
State/Territory Virginia
Case Type(s) Immigration and/or the Border
Case Summary
This case relates to Nexus Services, Inc.'s predatory consumer practices towards detainees in United States custody through one of its subsidiaries, Libre by Nexus (collectively "Nexus"). On February 22, 2021, The Consumer Financial Protection Bureau ("CFPB"), along with Virginia, Massachusetts, ... read more >
This case relates to Nexus Services, Inc.'s predatory consumer practices towards detainees in United States custody through one of its subsidiaries, Libre by Nexus (collectively "Nexus"). On February 22, 2021, The Consumer Financial Protection Bureau ("CFPB"), along with Virginia, Massachusetts, and New York (collectively "the States," and together with the CFPB, "the Plaintiffs"), filed this lawsuit in United States District Court for the Western District of Virginia. It was assigned to District Judge Elizabeth K. Dillon. The CFPB sued Nexus and its executives under §§ 1031, 1036, and 1054 of the Consumer Financial Protection Act ("CFPA") and 12 U.S.C. §§ 5531, 5536, 5564. The States sued under § 1042 of the CFPA, 12 U.S.C. § 5552, which authorizes state attorneys general to bring civil actions to enforce provisions of the CFPA. The States are further suing Nexus under their respective state laws. Represented by CFPB staff attorneys and the States' Attorneys General, the Plaintiffs sought injunctive relief, payments for damages and restitution, disgorgement, civil money penalties, and attorney's fees.

Nexus provides an intermediary service between detainees and the parties involved in their release from U.S. custody. In essence, Nexus contracts with detainees and their families and then instructs a bond agent to post their bond. In exchange for this service, Nexus requires detainees to pay an upfront fee, make monthly payments, and wear G.P.S. tracking devices for the duration of their contract. The Plaintiffs allege that, in conducting its service, Nexus engages in several predatory consumer practices, including (1) creating the false impression that it directly pays cash for immigrations bond, thus establishing a debtor-debtee relationship, (2) deceptively threatening detainees and their families, (3) abusively using English in their contracts, (4) falsely claiming to offer free legal services, (5) fraudulently charging for services they are unable to provide, and (6) neglecting to return collateral funds to clients.

Since the complaint's initial filing, Nexus filed a motion to dismiss for lack of subject matter jurisdiction on March 1, 2021, and a motion to stay on March 31, 2021. Nexus withdrew the motion to stay on June 22, 2021. The motion to dismiss is pending and a bench trial is currently set for January 20, 2023. The case is ongoing.

Richard Cantoral - 10/08/2021


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Issues and Causes of Action
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Issues
General
Fines/Fees/Bail/Bond
Staff (number, training, qualifications, wages)
Immigration/Border
Deportation - procedure
Undocumented immigrants - rights and duties
Undocumented immigrants - state and local regulation
Language
Spanish
Plaintiff Type
Non-DOJ federal government plaintiff
State Plaintiff
Causes of Action State law
Defendant(s) NEXUS SERVICES, INC.
Plaintiff Description Consumer Financial Protection Bureau, Commonwealth of Massachusetts, New York State, Commonwealth of Virginia
Class action status sought No
Class action status outcome Not sought
Filed Pro Se No
Prevailing Party None Yet / None
Public Int. Lawyer Yes
Nature of Relief None yet
Source of Relief None yet
Filed 02/22/2021
Case Ongoing Yes
Additional Resources
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  See this case at CourtListener.com (May provide additional documents and, for active cases, real-time alerts)
Court Docket(s)
W.D. Va.
09/17/2021
5:21-cv-00016-EKD-JCH
IM-VA-0011-9000.pdf | Detail
Source: PACER [Public Access to Court Electronic Records]
General Documents
W.D. Va.
02/22/2021
Complaint [ECF# 1]
IM-VA-0011-0001.pdf | Detail
Source: PACER [Public Access to Court Electronic Records]
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Judges Dillon, Elizabeth Kay (W.D. Va.) show/hide docs
IM-VA-0011-9000
Hoppe, Joel C. Court not on record [Magistrate] show/hide docs
IM-VA-0011-9000
Plaintiff's Lawyers Ashwell, Erin B (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Azia, Jane (New York) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Burke, Jon (Massachusetts) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Dearing, Stewart (New York) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Ehrlich, Jeffrey Paul (District of Columbia) show/hide docs
IM-VA-0011-0001
Gordon, Donald R (District of Columbia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Healy, Maura (Massachusetts) show/hide docs
IM-VA-0011-0001
Herring, Mark R. (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Irvin, David B (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
James, Letitia (New York) show/hide docs
IM-VA-0011-0001
Levine, Laura (New York) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Miller, Kara K (District of Columbia) show/hide docs
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Mueller, Joseph P (New York) show/hide docs
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Nguyen, Hai Binh T (District of Columbia) show/hide docs
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Petersen, Cara M (District of Columbia) show/hide docs
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Schweiker, Richard S Jr (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Sovinsky, Stephen J (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Towell, Samuel (Virginia) show/hide docs
IM-VA-0011-0001 | IM-VA-0011-9000
Witte, Erin E (Virginia) show/hide docs
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Defendant's Lawyers Bayles, David Grant (California) show/hide docs
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Collins, Samantha Katie (District of Columbia) show/hide docs
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Lee, J.H. Jennifer (California) show/hide docs
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Shoreman, John M (District of Columbia) show/hide docs
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Williams, Mario B (Georgia) show/hide docs
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