Barry Sturner and Townstone Financial reach favorable settlement with CFPB

Chicago; November 1, 2024: Today, Townstone Financial agreed to settle a lawsuit brought against it by the Consumer Financial Protection Bureau. The lawsuit centered on comments made on Townstone’s radio show about crime and homebuying in Chicago.

CFPB claimed the comments “would discourage” a “reasonable person” from seeking credit in violation of the Equal Credit Opportunity Act and its implementing regulations.

As part of the settlement, Barry Sturner, Townstone’s president and CEO, was dismissed from the case, and Townstone neither admits nor denies liability for the actions alleged in the complaint.

“This case should never have been brought. Unfortunately, the federal government possesses vast resources and the power to destroy lives and livelihoods, so settling is often the best approach for anyone facing a lawsuit of this kind,” said Steve Simpson, director of Separation of Powers Litigation at Pacific Legal Foundation — which represented Townstone free of charge in the lawsuit.

“My family and I are relieved to finally put this nightmare behind us,” said Barry Sturner, president and CEO of Townstone Financial. “The last six years have taken a toll on all of us.”

Townstone’s case has ended, but CFPB doubtless will continue to exceed its authority. Where it does, PLF will continue to fight back and put an end to federal agency overreach.

The case is CFPB v. Townstone.