Morgan Drexen Lawsuit against CFPB Thrown Out (May 4, 2015)
The U.S. Court of Appeals for the District of Columbia Circuit recently rejected a lawsuit by Morgan Drexen Inc. against the CFPB by a vote of 2-1. Lawyers for the provider of services to consumers through debt-relief contended that the section of the 2010 Dodd-Frank Act that set up the bureau violated the U.S. Constitution’s separation of powers because the CFPB wields too much power and has limited oversight. Prior to the appeals court’s decision, Morgan Drexen filed for Chapter 7 bankruptcy in California, claiming between $1 million and $10 million in assets and between 1,000 and 5,000 creditors, according to reports.
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