RD Legal Funding, LLC (RD Legal) and its affiliated companies recently filed a motion to dismiss the joint lawsuit by the Consumer Financial Protection Bureau (CFPB) and the New York State Attorney General’s office (NYAG). The motion seeks the dismissal of the complaint based on, among other things, the unconstitutional structure of the CFPB; the overreach by the CFPB in its attempt to regulate transactions over which it has no jurisdiction; and the improper characterization of RD Legal’s transactions as loans rather than true sales transactions.
During the course of the last several months, multiple media outlets have reported how other companies are pushing back against the CFPB’s overreaching as well as challenging the agency’s unconstitutional structure. In addition to RD Legal, Ocwen Financial Corporation, PHH Corporation, Pathfinder Payment Solutions, Prime Market Holdings, the Accrediting Council for Independent Colleges for Schools, and the State National Bank of Big Spring have challenged the CFPB’s overreaching. These companies have also argued the agency over stepped their authority, disregarded the law, and distorted the facts. The U.S. Department of Justice has also argued that the CFPB’s structure is unconstitutional.