Second Circuit Halts Oral Argument in CFPB Constitutionality Case

CFPB motions for postponement pending U.S. Supreme Court’s consideration of a similar case.

11/12/2019 9:00 AM

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Second Circuit Halts Oral Argument in CFPB Constitutionality Case

Proceedings in an appeals court case focused on the constitutionality of the Consumer Financial Protection Bureau’s leadership structure are on hold temporarily pending action in a similar case before the U.S. Supreme Court.

In CFPB v. RD Legal Funding LLC, Ballard Spahr LLP Of Counsel Barbara S. Mishkin reports the CFPB asked the Second Circuit to postpone the oral argument in the case until the Supreme Court issues a decision in the case Seila Law v. Consumer Financial Protection Bureau.

In Seila Law, a Ninth Circuit panel unanimously ruled the CFPB’s single director structure was constitutional, prompting Seila Law to file a brief asking the Supreme Court to hear the case to review that finding, ACA International previously reported.

RD Legal opposed the CFPB’s motion to hold the oral arguments in the Second Circuit case, “arguing that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act,” according to Mishkin.

The oral argument in the RD Legal case was set for Nov. 21, 2018, and the court’s order states it will be rescheduled.

Meanwhile, ACA is continuing to follow the Seila Law case. The Supreme Court’s review of the structure the CFPB is monumental. And, this marks the first time since the CFPB’s inception that agency leadership and the U.S. Department of Justice will not defend the structure of the bureau in litigation, ACA previously reported.

The issue of CFPB constitutionality is also slated for discussion on an upcoming episode of ACA Cast featuring an interview with Bassford Remele Shareholder Jessica Klander.

Subscribe to ACA Cast on Apple Podcasts  - Spotify  - Overcast  - TuneIn  - Stitcher  - Buzzsprout 

If you enjoy listening to ACA Cast, please take a moment and help us by leaving a rating and review on iTunes and sharing this podcast with others in accounts receivable management industry.

Related Content from ACA International:

U.S. Supreme Court Appoints ‘Friend of the Court’ Counsel to Defend CFPB’s Leadership Structure

SCOTUS to Hear Possible Game-Changing CFPB Case


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Second Circuit Halts Oral Argument in CFPB Constitutionality Case

Proceedings in an appeals court case focused on the constitutionality of the Consumer Financial Protection Bureau’s leadership structure are on hold temporarily pending action in a similar case before the U.S. Supreme Court.

In CFPB v. RD Legal Funding LLC, Ballard Spahr LLP Of Counsel Barbara S. Mishkin reports the CFPB asked the Second Circuit to postpone the oral argument in the case until the Supreme Court issues a decision in the case Seila Law v. Consumer Financial Protection Bureau.

In Seila Law, a Ninth Circuit panel unanimously ruled the CFPB’s single director structure was constitutional, prompting Seila Law to file a brief asking the Supreme Court to hear the case to review that finding, ACA International previously reported.

RD Legal opposed the CFPB’s motion to hold the oral arguments in the Second Circuit case, “arguing that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act,” according to Mishkin.

The oral argument in the RD Legal case was set for Nov. 21, 2018, and the court’s order states it will be rescheduled.

Meanwhile, ACA is continuing to follow the Seila Law case. The Supreme Court’s review of the structure the CFPB is monumental. And, this marks the first time since the CFPB’s inception that agency leadership and the U.S. Department of Justice will not defend the structure of the bureau in litigation, ACA previously reported.

The issue of CFPB constitutionality is also slated for discussion on an upcoming episode of ACA Cast featuring an interview with Bassford Remele Shareholder Jessica Klander.

Subscribe to ACA Cast on Apple Podcasts  - Spotify  - Overcast  - TuneIn  - Stitcher  - Buzzsprout 

If you enjoy listening to ACA Cast, please take a moment and help us by leaving a rating and review on iTunes and sharing this podcast with others in accounts receivable management industry.

Related Content from ACA International:

U.S. Supreme Court Appoints ‘Friend of the Court’ Counsel to Defend CFPB’s Leadership Structure

SCOTUS to Hear Possible Game-Changing CFPB Case


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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