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Connecticut attorney, software firm file suit against “unconstitutional” CFPB

cfpbConnecticut attorney Kimberly Pisinski and Morgan Drexen, a software firm she contracts with, recently filed suit against the CFPB, saying the agency’s structure is unconstitutional.

The suit, filed in the U.S. District Court for the District of Columbia, alleges that the CFPB engaged in a number of abusive practices, including attempts to collect material protected by attorney-client privilege; attempts to regulate the practice of law; threatening plaintiffs with legal action and using coercive tactics; and making overreaching demands for the personal financial information of American consumers.

The plaintiffs have asked the court to order the CFPB to stop using the tactics and to declare both the CFPB’s structure, as well as provisions of the Dodd-Frank Act that empower the CFPB, to be unconstitutional.

Pisinski and Morgan Drexen, which provides debt resolution and bankruptcy services, filed the suit after the CFPB issued a civil investigative demand to the company last March. The CID sought financial information on clients of some attorneys that employ Morgan Drexen’s services.

The CFPB has threatened enforcement actions against Morgan Drexen and has alleged that the attorneys supported by the company violate the Telemarketing Sales Rule, though Morgan Drexen denies the allegations.

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