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National Law Review
National Law Review
7/3/2026
WHO GETS IT?- $144MM Up For Grabs as Merchants Bank of Indiana Sues Account Holders and CFPB In Unusual Interpleader Action

WHO GETS IT?- $144MM Up For Grabs as Merchants Bank of Indiana Sues Account Holders and CFPB In Unusual Interpleader Action

Short summary

The CFPB secured a $130M+ judgment against CashCall and operator J. Paul Reddam after appeals failed. When Reddam blocked payment of $144MM held at Merchants Bank of Indiana, the bank filed an interpleader lawsuit to let courts decide entitlement. The case illustrates the enforcement power agencies wield and compliance risks financial institutions face.

  • •CFPB won $130M+ judgment against CashCall; Supreme Court denied review
  • •Merchant filed interpleader to resolve conflicting demands from CFPB and defendant
  • •Regulatory enforcement power forced bank to sue as neutral stakeholder

Generated with AI, which can make mistakes.

#regulation-policy
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