A California federal district court has refused to dismiss a lawsuit filed by the CFPB in January 2017 against several law firms and attorneys alleging that the defendants violated the FTC’s Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA) by illegally charging upfront fees for debt relief services which were disguised as fees for bankruptcy services. … Continue Reading

A California federal district court has entered a final judgment in favor of the CFPB in its enforcement action filed in August 2013 against Morgan Drexen, Inc. and its CEO.  The lawsuit alleged that Morgan Drexen charged advance fees for debt relief services in violation of the Telemarketing Sales Rule (TSR) and engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA). … Continue Reading

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 lack-of-standing, and for failure to demonstrate that declaratory and injunctive relief were procedurally proper.… Continue Reading

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 constitutional recess appointment authority when he filled three vacancies on the National Labor Relations Board in January 2012.  … Continue Reading

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 such a challenge.… Continue Reading

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 a lawsuit by Morgan Drexen in a Washington, D.C.… Continue Reading

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 Morgan Drexen charged unlawful advance fees for debt relief services and engaged in deceptive acts and practices.… Continue Reading

Visitors to Morgan Drexen’s website can now click through to a page that allows them to see information about Morgan Drexen’s lawsuit filed in Washington, D.C. against the CFPB, as well as other information intended to support Morgan Drexen’s position.  As we reported last week, the CFPB responded to the lawsuit by filing its own action against Morgan Drexen in a California federal district court. … Continue Reading

Yesterday, the CFPB filed a lawsuit against Morgan Drexen, the company that on July 22 sued the CFPB claiming that the Bureau’s structure violates the Constitution’s separation of powers.  Although Morgan Drexen sued the CFPB in federal district court in Washington, D.C., the CFPB filed its complaint in federal district court for the Central District of California where, according to the complaint, Morgan Drexen has its “physical business address.”  … Continue Reading