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CFPB's existence attacked by company it is suing

Posted by Clyde Hutchins | Apr 27, 2017 | 0 Comments

The constitutionality of the Consumer Financial Protection Bureau (CFPB) is being attacked in a case it brought against Ocwen.

The CFPB and several attorneys general sued Ocwen in connection with its foreclosure and loan servicing activities. The CFPB claims that Ocwen failed to comply with terms of a settlement agreement it reached with the CFPB and most of the states in 2014.

Ocwen did not waste any time in challenging the authority of the CFPB. The case was filed on April 21, 2017. Four days later, Ocwen filed a motion challenging the constitutionality of the CFPB. Ocwen invited the U.S. Attorney General to enter an appearance in the case. The crux of the challenge against Ocwn is that it is run by a single director that the president may not remove at will. This could constitute a violation of the separation of powers clause of the Constitution.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Prior to opening Harmony Law, Mr. Hutchins worked in the Wyoming Attorney General's Office for several years where he developed a strong consumer protection enforcement unit. In that position he led over 120 investigations and enforcement actions under the Consumer Protection Act. He worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado, on consumer protection matters. Mr. Hutchins is also a contributing author to Consumer Protection Law Developments, Second Edition. Previous to his work in the Attorney General's Office, Mr. Hutchins was in private practice in Anchorage, Alaska where he was the chief litigator for a firm. Mr. Hutchins represented municipalities on various matters. Mr. Hutchins provided counsel to businesses and investment advisors regarding compliance with securities laws. He was also a bond lawyer and worked on municipal financing matters. Prior to that, Mr. Hutchins practiced civil litigation with a law firm in Cheyenne, Wyoming. Mr. Hutchins devotes his spare time to his family, traveling and enjoying the great outdoors.

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Harmony Law is one of the few law firms in Colorado and Wyoming that focuses on consumer law. Mr. Hutchins is a member of the National Association of Consumer Advocates and state chair for Wyoming. If you have a consumer law issue, please feel free to call 970-488-1857 and speak with Mr. Hutchins.

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