CFPB Faces Constitutional Challenge To Litigation Firm Probe

Law360, New York (July 22, 2013, 6:23 PM EDT) -- The Consumer Financial Protection Bureau was accused Monday of overstepping its constitutional bounds by demanding sensitive financial information on law firm clients from a litigation support outfit targeted for allegedly deceptive debt-settlement work.

Morgan Drexen Inc. and a Connecticut solo practitioner it provided with paralegals lodged a suit in Washington, D.C., federal court challenging the CFPB's position that it has authority to investigate attorneys who are suspected of violating the federal Telemarketing Sales Rule, which it enforces alongside the Federal Trade Commission.

The complaint alleges that...
To view the full article, register now.