In an important victory for consumers across the nation, the U.S. Court of Appeals for the District of Columbia Circuit has dismissed a constitutional challenge to the Consumer Financial Protection Bureau (CFPB) filed by Costa Mesa-based Morgan Drexen Integrated Systems. The CFPB had filed a lawsuit against Morgan Drexen in federal court in 2013.
In a 2-1 vote, the judges rejected the claims of Morgan Drexen and its contracted Connecticut-based attorney Kimberly Pisinski, that the CFPB violates the U.S. Constitution’s separation of powers because it is not subject to Congressional oversight. The panel rules that Morgan Drexen did not have legal grounds to bring litigation.
Morgan Drexen, whose website states it “develops and delivers efficient legal support services to America’s Law Firms,” was the target of an enforcement action in 2013 by the CFPB after the CFPB accused it of charge advance fees for debt relief (illegal) and demand it turn over thousands of documents related to Pisinski’s bankruptcy clients. In its fight against the action, Morgan Drexen and Pisinsky said the documents were protected by attorney-client privilege and that the CFPB was essentially on hunting mission to “data mine” the “confidential financial information of distressed consumers.”
Click here for a copy of the U.S. Court of Appeals for the District of Columbia Circuit ruling.
According to an article in the OC Register, Morgan Drexen has ironically now filed for Chapter 7 bankruptcy protection.
Read the original article in DSNews.