CFPB Sued, Legality Challenged By Targets in Debt Relief Action
July 29, 2013
Two targets of the CFPBs recent crackdown on the debt relief industry sued the bureau in federal district court in Washington, DC, last week, challenging the constitutionality of the agency, as well as accusing it of data mining and attempting to obtain sensitive bankruptcy information protected by attorney-client privilege. At the heart of the dispute is a civil investigative demand the CFPB issued in March 2012 to Morgan Drexen Integrated Systems, whose personnel served as paralegals and other support staff for Connecticut...