Director Kraninger rejects constitutionality challenge as basis for setting aside CID

Ballard Spahr LLP
Contact

Ballard Spahr LLP

CFPB Director Kraninger has rejected the argument made by Equitable Acceptance Corp (EAC) that because the Bureau’s structure is unconstitutional, the civil investigative demand it received from the Bureau should be set aside or at least modified to stay the CID’s response deadlines pending the U.S. Supreme Court’s decision in Seila Law.

In her decision and order denying EAC’s petition to set aside or modify the CID, Director Kraninger stated that the Bureau “has consistently taken the position that the administrative process set out in the Bureau’s statute and regulations for petitioning to modify or set aside a CID is not the proper forum for raising and adjudicating challenges to the constitutionality of the Bureau’s statute.”  She also stated that should the Bureau seek a court order to compel compliance with the CID, EAC could raise its constitutional challenge as a defense before the district court.

Director Kraninger also rejected EAC’s argument that the CID was overly burdensome, stating that EAC had not established that it “meaningfully pursued” that objection with the Bureau’s enforcement staff during the meet-and-confer process.  While directing EAC to comply in full with the CID within 10 days of her order, Director Kraninger indicated that EAC “is welcome to engage with Bureau staff about any specific suggestions for modifying the CID…which may be adopted by the Assistant Director for Enforcement or Deputy Enforcement Director, as appropriate.”

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:

Ballard Spahr LLP
Contact
more
less

Ballard Spahr LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.