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Constitutional Challenges Civil Investigation Demand Consumer Financial Protection Bureau (CFPB)

Sheppard Mullin Richter & Hampton LLP

CFPB Wins at the Supreme Court

On May 16, the United States Supreme Court, in a 7-2 ruling, held that the CFPB’s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution. As we previously discussed in greater detail, under the...more

Epstein Becker & Green

Pending Supreme Court Decision on the Constitutionality of the Consumer Financial Protection Bureau’s Funding Structure Results in...

The United States Supreme Court’s pending decision in Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd., et al. (“Community Financial Services Association of America Ltd.”) in...more

Ballard Spahr LLP

Nevada federal district court stays CFPB action to enforce civil investigative demand pending SCOTUS decision in CFSA case

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A Nevada federal district court has stayed an action filed by the CFPB to enforce a civil investigative demand (CID) issued to a small-dollar lender pending the U.S. Supreme Court’s decision in Community Financial Services...more

Ballard Spahr LLP

Certiorari petition filed in Second Circuit case rejecting constitutional challenge to CFPB’s funding

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In CFPB v. Law Offices of Crystal Moroney, a three-judge panel of the U.S. Court of Appeals for the Second Circuit unanimously ruled in March 2023 that the CFPB’s funding structure does not violate the Appropriations Clause...more

Blank Rome LLP

U.S. Court of Appeals for the Second Circuit Rules That the Funding Structure for the Consumer Financial Protection Bureau Is...

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In this article, the authors review a decision by a federal circuit court of appeals upholding the constitutionality of the funding structure for the Consumer Financial Protection Bureau. Entities regulated by the...more

Ballard Spahr LLP

Certiorari Petition To Be Filed In Second Circuit Case Rejecting Constitutional Challenge To CFPB’s Funding

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In CFPB v. Law Offices of Crystal Moroney, a three-judge panel of the U.S. Court of Appeals for the Second Circuit unanimously ruled in March 2023 that the CFPB’s funding structure does not violate the Appropriations Clause...more

Locke Lord LLP

Second Circuit Decides CFPB Funding ‎Structure Is Constitutional, Setting up Circuit Split for ‎Supreme ‎Court

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On March 23, 2023 a three-judge panel of the U.S. Court of Appeals for the Second Circuit unanimously ruled in Consumer Financial Protection Bureau v. Law Offices of Crystal Moroney, P.C. (“Moroney”) that the CFPB’s funding...more

Cadwalader, Wickersham & Taft LLP

Second Circuit Rules CFPB Funding Mechanism Is Constitutional, Deepening Split with Fifth Circuit

On March 23, the U.S. Court of Appeals for the Second Circuit ruled that the CFPB’s funding mechanism is constitutional. The case, CFPB v. Law Offices of Crystal Moroney, is significant for two reasons. First, the Second...more

Troutman Pepper

Second Circuit Upholds CFPB’s Funding Structure

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Yesterday, a three-judge panel of the Second Circuit Court of Appeals issued a unanimous opinion declining to follow the Fifth Circuit’s decision in Community Financial Services Association of America, Ltd. v. Consumer...more

Ballard Spahr LLP

Second Circuit rules that CFPB’s funding does not violate Appropriations Clause

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A three-judge panel of the U.S. Court of Appeals for the Second Circuit has unanimously ruled that the CFPB’s funding structure does not violate the Appropriations Clause of the U.S. Constitution. In its decision, the panel...more

Blank Rome LLP

Second Circuit Holds CFPB’s Funding Structure Is Constitutional

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Entities regulated by the Consumer Financial Protection Bureau (“CFPB”), including banks, credit unions, payday lenders, mortgage servicers, debt collectors, and other financial services providers, should take note that the...more

Orrick, Herrington & Sutcliffe LLP

CFPB says ruling on funding structure doesn’t affect debt collector’s CID

In December, the CFPB denied a petition by a debt collection agency to set aside a civil investigative demand (CID) issued last October. The company challenged the Bureau’s authority to issue the CID on the grounds that the...more

Ballard Spahr LLP

Utah federal court rejects constitutional challenge to CFPB’s funding mechanism

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A Utah federal district court has rejected the attempt of The Center for Excellence in Higher Education (CEHE) to invalidate a civil investigative demand (CID) issued by the CFPB based on a challenge to the constitutionality...more

Ballard Spahr LLP

No further Supreme Court review to be sought by Seila Law

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Seila Law has sent a letter advising the Ninth Circuit that it will not seek further review from the U.S. Supreme Court....more

Goodwin

Ninth Circuit Stays Mandate in Seila Law Pending Resolution of Petition to Supreme Court

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On June 1, 2021, the Ninth Circuit, in CFPB v. Seila Law LLC, No. 17-56324, granted Seila Law LLC’s motion to stay the mandate requiring its compliance with a civil investigative demand, while it petitions the U.S. Supreme...more

Ballard Spahr LLP

Ninth Circuit stays mandate in Seila Law

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The Ninth Circuit has granted Seila Law’s motion for a stay of the mandate pending its filing of a petition for a writ of certiorari in the U.S. Supreme Court....more

Ballard Spahr LLP

Four judges dissent from Ninth Circuit denial of rehearing en banc in Seila Law; Seila Law asks Ninth Circuit to stay mandate...

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In December 2020, after the U.S. Supreme Court ruled that the CFPB’s structure was unconstitutional and remanded the case for further consideration, a unanimous panel of the U.S. Court of Appeals for the Ninth Circuit ruled...more

Ballard Spahr LLP

Ninth Circuit rules CID issued to Seila Law was validly ratified by Director Kraninger

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Less than six weeks after hearing oral argument, a unanimous panel of the U.S. Court of Appeals for the Ninth Circuit ruled that the CID issued to Seila Law was validly ratified by Director Kraninger and affirmed the district...more

Ballard Spahr LLP

Ninth Circuit hears oral argument in Seila Law on remand from SCOTUS

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Last Thursday, on remand from the U.S. Supreme Court, the U.S. Court of Appeals for the Ninth Circuit heard oral argument in Seila Law. The members of the three judge panel were Judge Susan Graber and Judge Paul Watford...more

Ballard Spahr LLP

Seila Law files supplemental brief with Ninth Circuit

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Last week, Seila Law filed its supplemental brief with the Ninth Circuit. The CFPB filed its supplemental brief last month....more

Ballard Spahr LLP

NY Federal District Court Grants CFPB Petition To Enforce CID Ratified By Director Kraninger

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On August 18, Judge Kenneth M. Karas of the Southern District of New York, granted the CFPB’s petition to enforce a civil investigative demand that it issued to the Law Offices of Crystal Moroney prior to the U.S. Supreme...more

Ballard Spahr LLP

CFPB files ratification with Ninth Circuit in Seila Law; Ninth Circuit orders supplemental briefing on ratification

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The CFPB has filed a declaration with the Ninth Circuit in which Director Kraninger stated that she has ratified the Bureau’s decisions to issue a civil investigative demand to Seila Law, deny Seila Law’s request to modify or...more

Hudson Cook, LLP

Supreme Court’s Seila Law Decision Brings Clarity to the CFPB (for Now)

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In June, the Supreme Court struck down the leadership structure of the CFPB as unconstitutional. (The case is Seila Law LLC v. CFPB, No. 19-7 (June 29, 2020), and the decision is here.) The case resolves a long-simmering...more

Hinshaw & Culbertson - Consumer Crossroads

SCOTUS Holds CFPB’s Single Director Structure Unconstitutional, Leaves Open Questions on Existing Bureau Matters

Earlier today, the United States Supreme Court issued a two part decision in Seila Law LLC v. Consumer Financial Protection Bureau. The Court first decided, in a 5-4 decision with Chief Justice Roberts authoring the Court's...more

Alston & Bird

Supreme Court Hears the CFPB Declare Itself Unconstitutional

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Our Financial Services Litigation Team dives into the oral argument before the U.S. Supreme Court that could decide the fate of the Consumer Financial Protection Bureau....more

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