REUTERS/Andrew Kelly

Justices pass on litigation funder’s challenge to CFPB authority

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(Reuters) – The U.S. Supreme Courtroom on Monday declined to hear a case difficult the U.S. Shopper Monetary Safety Bureau’s authority to pursue enforcement actions introduced earlier than the court docket held that the company’s construction was unconstitutional.

In a abstract order, the court docket declined RD Authorized Funding LLC’s petition.

The company and New York’s lawyer basic sued RD Authorized Funding in 2017, saying its preparations to entrance money to contributors within the 9/11 sufferer compensation fund and NFL concussion settlements had been misleading and violated a state interest-rate cap.

The CFPB’s authority to carry that case and others got here into query final 12 months when the Supreme Courtroom dominated in Seila Legislation LLC v. CFPB that the safety Congress afforded the CFPB director, who might solely be fired for trigger, was unconstitutional.

Nevertheless, the court docket left open the chance {that a} fireable director might assessment and ratify prior actions.

Since then, questions over the legality of ratification have held up older CFPB instances. By declining to hear the RD Authorized Funding case, the Supreme Courtroom left judges to kind them out.

Other than difficult the CFPB’s authority, RD Authorized Funding has argued its funding preparations weren’t loans ruled by client finance statutes however slightly gross sales of authorized receivables.

A spokesperson for the CFPB declined to remark on the case. An lawyer for the corporate didn’t instantly reply to a request for remark on Monday.

The case is RD Authorized Funding LLC v. Shopper Monetary Safety Bureau, U.S. Supreme Courtroom, No. 20-1758.

For RD Authorized Funding: Anne Voigts of King & Spalding

For the CFPB: Kevin Friedl

Learn extra:

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Biden ousts housing finance chief after U.S. Supreme Courtroom ruling

CFPB wields new SCOTUS ruling in enforcement instances

Jody Godoy

Jody Godoy stories on banking and securities regulation. Attain her at [email protected]