Lawsuit: Consumer Financial Protection Bureau Too Powerful; Unrestrained; UnConstitutional

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A legal support services company has filed a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB), alleging the emerging Federal agency is too unrestricted in its powers and threatens to aggrandize powers that are already properly delegated to established government agencies.

The suit, filed Monday by bankruptcy software company Morgan Drexen, states the CFPB owes no direct accountability to the American people, and represents a giant step toward costly redundancy, heavier regulation and unchecked government bloat.

The CFPB was from an omnibus piece of reactionary legislation – the Dodd-Frank Act – that ostensibly aimed to rein in Wall Street investment banks deemed “too big to fail” following the economic bailout of 2008.

According to a report Monday by The Hill:

Morgan Drexen claims the agency tried to obtain information that should be protected by attorney-client privileges. The information the CFPB wanted included names, addresses and income information about the clients of lawyers who used the company’s services, it said.

“…You provide that kind of sensitive information to your lawyer and now suddenly an agency of the federal government wants to collect it, and it’s little strange, particularly in light of some of the other things that have been going on with data collecting. We’re worried about the overreach a little bit,” said a lawyer attached to the plaintiffs.

The plaintiffs essentially are arguing that the CFPB is threatening to get into the business of extending its regulatory oversight to lawyers representing financial institutions – effectively adding an extra layer of illegal regulations to government scrutiny of law, a profession that, both legally and ethically, enjoys broad protections of practice and procedure.

The suit seeks to have a court declare the present administrative structure of the CFPB unconstitutional, and to strike down language in the Dodd-Frank Act that founded the agency.

Ben Bullard

Reconciling the concept of individual sovereignty with conscientious participation in the modern American political process is a continuing preoccupation for staff writer Ben Bullard. A former community newspaper writer, Bullard has closely observed the manner in which well-meaning small-town politicians and policy makers often accept, unthinkingly, their increasingly marginal role in shaping the quality of their own lives, as well as those of the people whom they serve. He argues that American public policy is plagued by inscrutable and corrupt motives on a national scale, a fundamental problem which individuals, families and communities must strive to solve. This, he argues, can be achieved only as Americans rediscover the principal role each citizen plays in enriching the welfare of our Republic.

  • Alex

    Only Conservatives favor an unregulated marketplace. To the Conservative, making money is FAR more important then protecting lives or the Earth.

    While still pulling strongly for Hillary to become our first woman president, Elizabeth Warren would not be a bad choice, either. Not at all!!

    Either way, Progressives are charting our future. We sit and laugh as the Reich wing Republikan Party EATS ITSELF ALIVE!!!

    HA HA HA HA!! You Fright Wingers are LOST!! Young people laugh at your archaic, Cro-Magnon beliefs…

    • http://www.thefreedomtrainusa.com/ FreedomTrainUSA

      “Either way, Progressives are charting our future. We sit and laugh as the Reich wing Republikan Party EATS ITSELF ALIVE!!!”
      IS DETROIT AND OTHER SUCH CITIES PART OF HOW THE LIBERALS ARE CHARTING OUR FUTURE????????

      • Frank Kahn

        Don’t pay attention to Alex, he thinks that people who are too young to have any practical knowledge or wisdom, and are blatantly ignorant should rule the world.

        • http://www.thefreedomtrainusa.com/ FreedomTrainUSA

          With age comes Wisdom…BUT ONLY IF YOU ARE USING REAL FACTS AND IDEAS….Not the Phony Liberal Utopian crap that will FAIL EVERY TIME IT IS USED…

      • Gib74

        Blueprints for liberal utopia.

        Still expecting the rest of the Nation to bail them out. = [

      • Bernard Forand

        Kind of like a big DUH here on Detroit’s demise. Do you think it was a result by the 2008 deregulating, of our financial institutions?
        Those that seek deregulations have desires we return to the Bushwhacking years, that accumulated in the 2008 {R} Great recession which was eerily similar to the 1929 {R} Great depression. One would have to be Tea Intoxicated to appreciate the USA’s demise.
        They do say third time is a charm.

        • http://www.thefreedomtrainusa.com/ FreedomTrainUSA

          The problems that Detroit and other cities like them have is decades of Liberal UTOPIA RULE….SOCIALISM DOES NOT WORK….EVERY EXPERIMENT IN SOCIALISM IN HISTORY HAS FAILED….Not that Liberals ever read the annuals of History to find out the TRUTH about their FAILED EXPIERIMENT….The old Soviet Union FAILED BECAUSE OF SOCIALISM…Not because of Communism…

  • flashy

    A. There are several agencies which have overlapping powers. Not unusual. And what the article cites as information beyond the norm? Ummm…it’s all in a bankruptcy petition … why is it “attorney/client privilege” ?

    I guess it’s akin to the song by Groucho Marx. Maybe it’s the anthem (unofficial) for the TP and American Taliban…if its good for Middle Americans or they’re asked for solutions…”they’re against it ”

  • Bernard Forand

    The season of the pirates is approaching once again. Elements of the Tea Party are preparing another daring kidnapping of our financial security. Hostage / Ransom scenarios will once again be emphasized as the ideal leadership ideology of this dysfunctional party. Saddling us with the most dysfunctional Congress in our Nations History is what they consider as honor.
    July 23 2013 House Appropriations sub committee drafts a bill to cut Environmental Protection By 34%, Eliminate gas regulations, National endowments for the arts and humanities by 50% Fish and Wildlife by 27%. Of the $3 Billion for Alternative energy reduced to $826 Million Of the $380 Million for advanced research and development in energy down to $70 Million. Once again eliminate PBS {Big Bird}, Education grants cut 16% for the improvised, Labor Department cut 13%. Meanwhile back in the senate {R Tea} are threatening Senator Harry Reid Senate Majority leader {D}’, vow to hold the nation hostage if any money is considered to support any portion of Obamacare. Senator John Cornyn {R Tea}, John Thune {R Tea},
    And Marco Rubio {R Tea} are the official keepers of the Tea Pot in the senate.
    Legislative days to go are a mere 24 days away from the Oct.1 deadline. Considering since 2010 Tea have not ever entertain the concept of politics or comprehend it, what chance will there be in the next 24 days they have left to educate themselves?
    A letter drafted by senators Mike Lee {R Tea}, Ted Cruz {R Tea}, and Rand Paul {R Tea} Demanding to not fund any provisions of Obamacare. Taken together we are witnessing the greatest cuts since 1995 when the republicans sought to eliminate the departments of Education, Energy and Commerce and holding the USA Hostage for 28 days!
    Dan Pfeiffer sums it up “ Republicans’ were offering no plan, other than indiscriminate cuts as far as the eye can see and repeal Obamacare as often as possible.” Mr. Pfeiffer warns the nation that the Tea is once again seeking a train wreck form of politics for the USA.
    Republicans further demand reforms to cut Medicare and S.S., Rewriting the Tax Code. Unless all of these issues are surrendered to the {R Tea}, the pirates will initiate there threats against the USA. Senator McConnell {R Tea} made it clear he will not abide by the cut spending across the board sequester. It would require cuts to too many austerity strategic components.
    Security and Exchange Commission that has been enforcing laws and investigating the corruptive practices of Wall Street and the Banks is to be cut by18%. Transportation and housing bill cut nearly 50%, Community Block Grants to levels below what the founder President Gerald Ford had originated, slashing any funds to the new Consumers Protective Agency, IRS cut by 24%, Amtrak by 30% and clean water grants slashed 83%!
    Bottom line {R Tea} have no intention of actually seeking any security for their constituents‘. Traditionalist conservative republicans are now distancing themselves from such Tea intoxicated demands and pirating ideologies. Zealot extremist with no intelligent beneficial leadership for the nation. Austerity is illuminated as their motivation!
     
      
     
     
     
     
     
     
     
      
    The season of the pirates is approaching once again. Elements of the Tea Party are preparing another daring kidnapping of our financial security. Hostage / Ransom scenarios will once again be emphasized as the ideal leadership ideology of this dysfunctional party. Saddling us with the most dysfunctional Congress in our Nations History is what they consider as honor.
    July 23 2013 House Appropriations sub committee drafts a bill to cut Environmental Protection By 34%, Eliminate gas regulations, National endowments for the arts and humanities by 50% Fish and Wildlife by 27%. Of the $3 Billion for Alternative energy reduced to $826 Million Of the $380 Million for advanced research and development in energy down to $70 Million. Once again eliminate PBS {Big Bird}, Education grants cut 16% for the improvised, Labor Department cut 13%. Meanwhile back in the senate {R Tea} are threatening Senator Harry Reid Senate Majority leader {D}’, vow to hold the nation hostage if any money is considered to support any portion of Obamacare. Senator John Cornyn {R Tea}, John Thune {R Tea},
    And Marco Rubio {R Tea} are the official keepers of the Tea Pot in the senate.
    Legislative days to go are a mere 24 days away from the Oct.1 deadline. Considering since 2010 Tea have not ever entertain the concept of politics or comprehend it, what chance will there be in the next 24 days they have left to educate themselves?
    A letter drafted by senators Mike Lee {R Tea}, Ted Cruz {R Tea}, and Rand Paul {R Tea} Demanding to not fund any provisions of Obamacare. Taken together we are witnessing the greatest cuts since 1995 when the republicans sought to eliminate the departments of Education, Energy and Commerce and holding the USA Hostage for 28 days!
    Dan Pfeiffer sums it up “ Republicans’ were offering no plan, other than indiscriminate cuts as far as the eye can see and repeal Obamacare as often as possible.” Mr. Pfeiffer warns the nation that the Tea is once again seeking a train wreck form of politics for the USA.
    Republicans further demand reforms to cut Medicare and S.S., Rewriting the Tax Code. Unless all of these issues are surrendered to the {R Tea}, the pirates will initiate there threats against the USA. Senator McConnell {R Tea} made it clear he will not abide by the cut spending across the board sequester. It would require cuts to too many austerity strategic components.
    Security and Exchange Commission that has been enforcing laws and investigating the corruptive practices of Wall Street and the Banks is to be cut by18%. Transportation and housing bill cut nearly 50%, Community Block Grants to levels below what the founder President Gerald Ford had originated, slashing any funds to the new Consumers Protective Agency, IRS cut by 24%, Amtrak by 30% and clean water grants slashed 83%!
    Bottom line {R Tea} have no intention of actually seeking any security for their constituents‘. Traditionalist conservative republicans are now distancing themselves from such Tea intoxicated demands and pirating ideologies. Zealot extremist with no intelligent beneficial leadership for the nation. Austerity is illuminated as their motivation!
     
      
     
     
     
     
     
     
     
      

    • jim b

      Wow Bernie, your pro government zombie stance is pretty scary! I can’t even comment on your comments because they are so convoluted and wrong that there is no way to untangle the gob of unintelligence that connects these synapsis together. All I can say to you is, good luck with that.

      • Michael Shreve

        Those who TRUST government are it SLAVES.

  • jim b

    We needed another government agency like we need a hole in the head. BHO big government, and the 535 other idiots need to stop this madness of government fixes for every single hiccup that takes place in this country. If the government were to stay out of it, special interest would not get any traction, i.e. couldn’t pay off government insiders to make rules/laws to keep insolvent businesses in business past their expiration date (this would also stop the insider information racket that these elected government officials now enjoy so lucratively). Once that is done, consumers become the focus of business innovation, those who do the best at providing services and products the consumer wants or needs wins. No bailouts, no keeping alive a company like Chevy who ruined their company on an antiquated business model and now produces junk automobiles. If the government element was removed from the economic picture I strongly suggest that our technology, and our economies would be light years ahead of where we are today.

  • Marshall Watson

    This article again sheds light on government over reach and control. We do not need the government to fix everything for us. Really, they have been trying to fix the banking industry since 2007-08, how’s that been working? The only things they accomplished was to remove the blame from those who caused the financial meltdown, reward them with bailout money at the expense of those they robbed, dilute the value of our currency, and in general use a crisis the government created to expand government control into our personal lives to the extent we are very close to being enslaved by the people who we elected to protect us from enslavement. Obama has never provided valid documents to prove he is a natural born American citizen and eligible for the office he holds. Every scandal and coverup that has come to light in the years of his presidency, points directly to him or a person directly subordinate to him. This agency is just another form of government oversight and over reach that is not only unnecessary, but unconstitutional, therefore against the law of the land. When will enough be enough? When the powers that be create a crisis that enables them to enact the “Doomsday Mandate” that should never have been allowed to become law. Believe me when I say before he allows himself to be removed from office, it will be enacted and martial law declared, then he won’t have to worry about the constitution, he will have the power to whatever to whomever he pleases!

  • Michael Shreve

    I agree. It is a good concept applied with TYPICAL government sledge hammer accuracy. NOT a FEDERAL responsibilty.