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The regulator says its prior amicus brief, which cited the Fair Debt Collection Practices Act and sided with borrowers, was no longer valid.
Agency lawyers called the rule, which was almost a decade in the making, "unlawful" in a court filing.
A recent deal involving a troubled Texas bank shows that even the most lopsided depository can find an exit.
The card issuing fintech has worked for years to expand its business outside of Block. Mike Milotich, who in February became the third person to hold the fintech's top job in as many years, has been tasked to do just that.
As the class action lawsuit settlement industry became overwhelmed with fraud, a bank and a fraud scoring company teamed up to fight back.