Consumer Financial Protection Bureau v. RD Legal Funding, LLC

CFPB (or BCFP?) and NY Attorney General: Companies that offered cash payments to litigants (September 11 victims and former NFL players with brain injuries) waiting for payouts from settlement agreements were in fact offering usurious loans (under NY law) and engaging in deceptive and abusive tactics (under federal law). District court: I’m kicking the CFPB out of the case because the CFPB’s structure (a single director, who does not serve at the pleasure of the president, rather than a board) is unconstitutional; the entire CFPB section should be stricken from the Dodd-Frank Act. The company isn’t off the hook, though; New York can pursue its claims. (The decision creates a split with the D.C. Circuit, which upheld the CFPB structure in January.)

Tags: 2018, Administrative Law, CFPB, Dodd-Frank, Southern District of New York

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