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. Mr. Hutchins started his career as a lawyer in Cheyenne, Wyoming. First gaining experience as a law clerk for the district court judges, Mr. Hutchins entered private practice with a Cheyenne firm focused on civil litigation, business law and some general practice law. Later, Mr. Hutchins went to Alaska, where he was the chief litigator for a firm that engaged in bond law, corporate law, securities law, and the broad reach of municipal law. Mr. Hutchins returned to Cheyenne to represent the State of Wyoming in the national tobacco arbitration. While in that position, he developed the consumer protection unit for the Wyoming Attorney General's Office. He led over 120 investigations and enforcement actions in Wyoming and worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado. Mr. Hutchins relocated to Colorado in 2016 and founded Harmony Law. Mr. Hutchins has established Harmony Law in three principal areas of law. First, it is a general practice firm in the areas of business law, estate planning and family law. Secondly, it is a civil litigation firm, practicing law in state and federal courts throughout Wyoming and Colorado. Finally, it is one of the few firms in Wyoming or Colorado that focuses on consumer protection law.


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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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