Firm Secures Dismissal of CFPB Enforcement Action
On March 26, the Firm secured a groundbreaking victory when the U.S. District Court for the District of Delaware dismissed an enforcement action brought by the Consumer Financial Protection Bureau (“CFPB”) against fifteen student loan trusts. The decision comes in the wake of the Supreme Court’s holding last summer that the CFPB was unconstitutionally structured, which left lower courts to resolve whether the CFPB could salvage individual cases by “ratifying” its earlier decisions to bring them. In granting the motion to dismiss, the district court recognized that the statute of limitations had run on the CFPB’s claims; that the CFPB’s attempted ratification therefore came too late to be effective; and that CFPB was not entitled to equitable tolling because it had failed to diligently protect its rights. This is the first decision nationwide to dismiss a CFPB enforcement action on these grounds.
To read press on the case in Law360 please click here; in Reuters please click here.