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Tag Archives: constitutionality

House subcommittee to hold hearing tomorrow on CFPB’s constitutionality

Posted in CFPB General

The Subcommittee on Oversight and Investigations of the House Committee on Financial Services has scheduled a hearing for tomorrow entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.”  The memo from the Committee’s Majority Staff to Committee Members states that “the [h]earing will examine whether the structure of the Bureau violates the Constitution as well… More >

Constitutionality of CFPB structure at issue in D.C. Circuit oral argument

Posted in CFPB Enforcement, CFPB General

The constitutionality of the CFPB’s structure was front and center at this past Tuesday’s oral argument in PHH Corporation et al. v. CFPB before the U.S. Court of Appeals for the D.C. Circuit.  The case involves PHH’s appeal from Director Cordray’s June 2015 decision  affirming an administrative law judge’s recommended decision that concluded PHH had… More >

Challenge to CFPB’s constitutionality reemerges

Posted in CFPB General

The issue of the CFPB’s constitutionality reemerged last week in court and Congress. On the judicial front, the U.S. Court of Appeals for the D.C. Circuit, in State National Bank of Big Spring, Texas, et al. v. Lew, et al., reversed the district court and ruled that the bank had standing to challenge the  constitutionality… More >

Senate Judiciary Committee holds hearing on Dodd-Frank constitutional issues

Posted in CFPB General

The Senate Judiciary Committee held a hearing yesterday entitled “The Administrative State v. The Constitution: Dodd-Frank at Five Years.”  The hearing was focused on constitutional issues relating to the Dodd-Frank Act, including the constitutionality of the CFPB. The witnesses were: The Honorable C. Boyden Gray of Boyden Gray & Associates, PLLC: Deepak Gupta of Gupta… More >

Suit Challenging Constitutionality of CFPB Fails for Lack-of-Standing and Other Procedural Defects, D.C. Circuit Holds; Morgan Drexen files for Bankruptcy

Posted in CFPB General

Last week, in Morgan Drexen, Inc. v. Consumer Financial Protection Bureau, a divided panel of the D.C. Circuit Court of Appeals affirmed the dismissal of an action challenging the constitutionality of the CFPB.  The court did not reach the merits of the constitutional challenge, but rather held that the district court properly dismissed the case for… More >

CFPB’s constitutionality again before D.C. Circuit in Morgan Drexen appeal

Posted in CFPB General

The CFPB’s constitutionality is again before the D.C. Circuit, with the D.C Circuit now being asked to consider the impact of the U.S. Supreme Court’s decision in NLRB v. Canning on actions taken by the CFPB while Director Cordray was serving as a recess appointee.  In that decision, the Supreme Court ruled that President Obama exceeded his… More >

Ninth Circuit rejects Morgan Drexen’s attempt to enjoin CFPB’s enforcement action

Posted in CFPB Enforcement

As previously reported, in January 2014, the California federal district court hearing the CFPB’s enforcement action against Morgan Drexen rejected Morgan Drexen’s motion to dismiss based on a challenge to the CFPB’s constitutionality.  Although similar challenges had been made in other cases, this appeared to be the first decision to rule on the merits of… More >

CA federal court rejects challenge to CFPB’s constitutionality

Posted in Arbitration, CFPB General

The California federal district court hearing the CFPB’s enforcement action against Morgan Drexen has rejected Morgan Drexen’s challenge to the CFPB’s constitutionality.  Although similar challenges have been made in other cases, this appears to be the first decision to rule on the merits of such a challenge.  The CFPB’s enforcement action followed the filing of… More >

D.C. federal court dismisses Morgan Drexen lawsuit against CFPB

Posted in CFPB General

A Washington, D.C. federal district court has dismissed the lawsuit filed by Morgan Drexen against the CFPB that alleged the Bureau’s structure was unconstitutional because it violated the Constitution’s separation of powers. Approximately one month after Morgan Drexen’s filing, the CFPB filed an enforcement action against Morgan Drexen in federal district court in California alleging that… More >

New lawsuit challenging CFPB’s constitutionality filed

Posted in CFPB General

Constitutional challenges to the CFPB’s authority have not ended with Director Cordray’s confirmation last week as CFPB Director.  Yesterday, a lawsuit was filed against the CFPB in federal district court in Washington, D.C. by two targets of the CFPB’s crackdown on the debt relief industry which claims that the agency’s structure violates the Constitution because… More >

The debate continues

Posted in CFPB General

In a reprise of their debate at the January 2013 meeting of the American Bar Association’s Consumer Financial Services Committee, C. Boyden Gray and Deepak Gupta will be debating the constitutionality of the CFPB and Richard Cordray’s recess appointment as CFPB Director this afternoon at Georgetown Law.  Mr. Gray is former White House Counsel to… More >

State AGs join lawsuit challenging constitutionality of CFPB

Posted in CFPB General

Republican state Attorneys General from Oklahoma, South Carolina and Michigan have now joined the lawsuit that was filed this past June in federal court in Washington, D.C. challenging the constitutionality of Dodd-Frank.  (Contrary to initial reports, the Kansas AG did not join the suit.)  The original plaintiffs in that lawsuit were State National Bank of… More >