Browsed by
Tag: CFPB

Federal Appeals Court’s Dissenting Judge Says CFPB Is Unconstitutional, Would Have Ruled For Secondary Market Company

Federal Appeals Court’s Dissenting Judge Says CFPB Is Unconstitutional, Would Have Ruled For Secondary Market Company

As described here, in a 2-1 opinion, the U.S. Court of Appeals for the District of Columbia denied a motion for an injunction, pending appeal, against the Consumer Financial Protection Bureau (CFPB) by a secondary insurance market company, and rejected that company’s argument that the CFPB’s structure violates the U.S. Constitution. The unidentified company had filed a lawsuit (John Doe Company v. Consumer Financial Protection Bureau, et al., Civil Docket No. 1:17-cv-00049-RC, U.S. Dist. Ct., District of Columbia) against the Consumer…

Read More Read More

D.C. Circuit Court of Appeals Rejects Secondary Market Company’s Constitutional Challenge to Consumer Financial Protection Bureau

D.C. Circuit Court of Appeals Rejects Secondary Market Company’s Constitutional Challenge to Consumer Financial Protection Bureau

A federal appellate court has rejected a secondary market company’s constitutional challenge to the federal  Consumer Financial Protection Bureau’s authority to investigate the company. The opinion of the U.S. Court of Appeals for the District of Columbia in Doe Co. v. Cordray, No. 17-5206 (D.C. Cir. Mar. 3, 2017) – decided with two judges in the majority, and one dissenting – is one of the latest developments in multiple fronts alleging that the actions or authority of the Consumer Financial…

Read More Read More

J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

As described in previous Secondary Insurance Market Blog posts (such as those here, here and here), the Consumer Financial Protection Bureau has sought to investigate structured settlement factoring company J.G. Wentworth, which argued that the CFPB lacked authority to conduct such an investigation. In the lawsuit brought by the CFPB to enforce its investigation, J.G. Wentworth recently cited a new opinion as supplemental authority in its arguments. In a filing with the court last week, J.G. Wentworth cited CFPB v. Harbour…

Read More Read More

More News Reports Describe CFPB Lawsuit, Reactions

More News Reports Describe CFPB Lawsuit, Reactions

The Consumer Protection Financial Bureau’s lawsuit against factoring company Access Funding, alleging violations of federal law in connection with structured settlement factoring transactions between the company and Maryland residents, has led to a number of news reports and other articles describing both the litigation and some reactions. Here is a sample of the media pieces and what they say: Federal Watchdog Sues Md. Company Over Lead Paint Settlements, Baltimore Sun (available here), which reports on how the CFPB lawsuit followed an…

Read More Read More

Washington Post Continues Reports on Structured Settlement Factoring with Story About Consumer Financial Protection Bureau Lawsuit

Washington Post Continues Reports on Structured Settlement Factoring with Story About Consumer Financial Protection Bureau Lawsuit

As described here, the Consumer Financial Protection Bureau has filed a lawsuit against Access Funding and other defendants, alleging violations of the Consumer Financial Protection Act in connection with structured settlement factoring transactions involving Maryland payees. The lawsuit is the latest in a series of developments that can be traced back to an August, 2015 front-page investigative news story by The Washington Post. The Post, which has published a number of stories about allegedly abusive practices by structured settlement factoring companies,…

Read More Read More

Consumer Financial Protection Bureau Sues Factoring Company Over Structured Settlement Transfer Deals, Alleges Violation of Federal Law

Consumer Financial Protection Bureau Sues Factoring Company Over Structured Settlement Transfer Deals, Alleges Violation of Federal Law

In the latest development involving structured settlement factoring transactions that have come under scrutiny in Maryland since 2015, the Consumer Financial Protection Bureau has filed suit against factoring company Access Funding, LLC, alleging that the company engaged in unfair and deceptive practices that are prohibited by federal law. The transactions involve Maryland structured settlement payees who agreed to sell structured settlement payment rights to Access Funding companies in the past five years, and whose deals were approved by court orders in…

Read More Read More

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…

Read More Read More

Another Commentary Questions CFPB Authority in Regulation of Factoring of Settlement Payment Rights

Another Commentary Questions CFPB Authority in Regulation of Factoring of Settlement Payment Rights

As has been described in previous posts (here and here), some commentators have questioned the authority of the Consumer Financial Protection Bureau over some businesses that it has investigated – businesses that include structured settlement factoring. Consistent with the previous commentaries, two authors have written a piece for the publication Corporate Counsel, entitled “The Long Arm of the CFPB”, once again expressing doubt about the jurisdiction of the CFPB in certain areas.  The piece is available here.

Consumer Financial Protection Bureau Goes to Court to Enforce Investigative Demands Against J.G. Wentworth

Consumer Financial Protection Bureau Goes to Court to Enforce Investigative Demands Against J.G. Wentworth

The Consumer Financial Protection Bureau last week filed a petition in federal court seeking to enforce its civil investigative demands against J.G. Wentworth and its affiliated companies. The CFPB on June 7 filed its petition in the U.S. District Court for the Eastern District of Pennsylvania, alleging that J.G. Wentworth has refused to produce additional documents in response to the CFPB’s civil investigative demand (CID). The CFPB sought documents and information in connection with an investigation of whether J.G. Wentworth…

Read More Read More

CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

Consumer Financial Protection Bureau Director Richard Cordray this month signed an order rejecting J.G. Wentworth, LLC’s petition for an order to set aside or modify a CFPB civil investigative demand. In the order, Cordray said that the CFPB in September, 2015, has issued a civil investigative demand (CID) to J.G. Wentworth, stating in the DIC that it had been issued “to determine whether persons involved in advancing funds in exchange for the rights to future payments from structured settlements or…

Read More Read More