WASHINGTON, D.C. – Today, a federal district court judge in New York wrongly sided with RD Legal, a company that was sued by the Consumer Financial Protection Bureau (CFPB) for scamming 9/11 first responders out of millions of dollars in compensation funds. The judge claimed that the CFPB is unconstitutionally structured and should not be in existence. The impact of the district court’s decision is unclear, but this extreme ruling disregards the holding of the full D.C. Circuit Court of Appeals, which affirmed the agency’s constitutionality.
Center for Responsible Lending (CRL) Litigation Counsel Will Corbett issued the following statement:
“The 2008 financial crisis proved the need for the CFPB, a successful independent consumer watchdog. Under the radical logic of this court’s ruling, our consumer watchdog would be eliminated and the door would be reopened for financial predators, such as those who steal from 9/11 heroes.
“This decision is a clear and completely inappropriate example of legislating from the bench.”
Background
The CFPB was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The CFPB opened its doors in 2011 and has played a crucial role in implementing the financial reform law. Over the past seven years, the CFPB has provided more than $12.4 billion in relief to 31 million Americans harmed by illegal financial practices.
