CFPB’s Investigation Into J.G. Wentworth Exceeds Its Authority, Says U.S. Chamber of Commerce In Amicus Brief

CFPB’s Investigation Into J.G. Wentworth Exceeds Its Authority, Says U.S. Chamber of Commerce In Amicus Brief

The U.S. Chamber of Commerce last week filed an amicus curiae brief in opposition to the Consumer Financial Protection Bureau’s attempt to enforce a civil investigative demand against factoring company J.G. Wentworth.

The Chamber of Commerce filed its brief in the pending proceeding in the United States District Court for the Eastern District of Pennsylvania, where the CFPB has sued J.G. Wentworth to enforce the civil investigative demand (“CID”) relating to an array of topics and transactions involving structured settlement factoring.

In the brief, the Chamber of Commerce argued that enforcement of the CID would expand the CFPB’s authority “far beyond the limits established by Congress”.

As reported in an earlier Secondary Insurance Market Blog post (available here), “[a]fter initially cooperating with previous requests from the CFPB in 2014, J.G. Wentworth last year challenged the CFPB’s jurisdiction to issue a more extensive CID that appears to cover virtually every J.G. Wentworth transaction since the enactment of the CFPA. In February, 2016, the CFPB rejected J.G. Wentworth’s petition to set aside the CID.”

Others have questioned the CFPB’s authority in connection with the CID, as reported in, for example, this Secondary Insurance Market Blog post.

The Chamber of Commerce’s brief is available here.  A National Law Journal article concerning the filing of the brief (CFPB Faces New Test to Power as U.S. Chamber Weighs In) is available here.

 

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