Subscribe to our mailing list

X

Case Dismissed as CFPB Ruled Unconstitutional

By on June 25, 2018

Well here is a little piece of information that is going to throw cases brought by the Consumer Financial Protection Bureau (CFPB) into a mess.

On June 21, 2018, Senior United States District Judge Loretta Preska ruled the CFPB “is unconstitutionally structured and lacks authority to bring claims.”

In the case CFPB v. RD Legal Funding, the Judge said, “the Clerk of Court shall terminate Plaintiff Consumer Financial Protection Bureau as a party to this action.”

In the past, a DC court ruled the CFPB was appropriately constituted and this latest decision just throws a wrench in the works.

Judge Perska further held that the provision of the statute that she held unconstitutional cannot be severed from the rest of the section of the Dodd-Frank Act that established the CFPB, and she, therefore, held the entire section to be invalid.

The ruling by Judge Perska does not impact all courts and all judges. Jeff Sovern says, “While Judge Preska would surely dismiss any claims brought by the CFPB that land in her court, her decision does not bind any other district court judge, and so the Bureau could still bring cases before other judges, including other judges in the Southern District of New York.”

You can read the full opinion here.

READ  Navient Sued by CFPB for Failing All Student Loan Borrowers

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Share a Comment / Leave a Reply

%d bloggers like this: