The Consumer Financial Protection Bureau (CFPB) has filed a motion to dismiss the case currently challenging President Obama’s recess appointment of Director Richard Cordray, citing plaintiffs’ lack of standing in a report from the CFPB.
This decision comes five months after complaints filed by State National Bank of Big Spring, Texas along with two nonprofits—60 Plus Association and Competitive Enterprise Institute—claiming President Obama’s January appointment of current CFPB Director Cordray was unconstitutional.
The CFPB filed its motion with other named defendants, who included the Treasury Department, the other federal banking agencies and the U.S. Securities Exchange Commission.
In June, State National Bank filed suit against the CFPB, claiming that the CFPB Unfair, Deceptive and Abusive Acts or practices caused it to exit the mortgage lending business.
These defendants filed their claims for dismissal on the basis that neither State National Bank, nor the other plaintiffs have showed “any injury sufficient to give them standing to challenge the CFPB’s constitutionality or Director Cordray’s appointment,” according to Ballard Spahr LLP.
Written by Jason OlivaEmail This Post Print This Post
- Related Posts
- CFPB Supervision of Non-Bank Mortgage Lenders Begins
- Senate Committee Says OK to Cordray for CFPB, GOP Not Convinced
- CFPB’s Work Hampered by Legal Snare