Second Circuit – Consumer Financial Protection Bureau: CFPB v. Law Offices of Crystal Moroney

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United States Court of Appeals for the Second Circuit

Consumer Financial Protection Bureau

Civil Investigative Order – Constitutionality

CFPB v. Law Offices of Crystal Moroney

20-3471

Judges Kearse, Walker, and Sullivan

Background: The respondent-appellant provides legal advice and services to clients seeking to collect debt. The plaintiff served upon the respondent a civil investigative demand for documents, which it later petitioned a court to enforce. On appeal, the respondent argues that the CIB is void ab initio because CFPB director was shielded from presidential oversight by an unconstitutional removal provision at the time the CID was issued, that the funding violates the Appropriations Clause of the Constitution, and that Congress violated the non-delegation doctrine when it created the CFPB’s funding structure.

Ruling: The Second Circuit affirmed. The court held that the CIB was not void because the CFPB director was validly appointed. Furthermore, the funding structure is not unconstitutional as it was authorized by Congress and bound by specific statutory provisions, noting a 12% draw from the Federal Reserve System.

Richard A. Samp, of New Civil Liberties Alliance, for the respondent-appellant; Kevin E. Friedl, of the Consumer Financial Protection Bureau, for the petitioner-appellee.

Oral argument audio (1) (2)