Removing Barriers Blog

BCFP Structure Constitutionality Update
Posted December 03, 2018 by CUNA Advocacy

According to Bloomberg Government, the BCFP is nearing a settlement with D&D Marketing, Inc. in a case before the U.S. Court of Appeals for the Ninth Circuit.  A settlement could potentially remove one of several lawsuits questioning the constitutionality of the Bureau’s single-director structure.

The defendant in the case, D&D Marketing, Inc., had raised the constitutionality question as a means to invalidate an enforcement action related to the buying and selling consumer loan information.  If the BCFP and D&D Marketing were able to resolve the lawsuit through a negotiated settlement, the Ninth Circuit would not have the opportunity to weigh in on the Bureau’s structure in this specific instance.

However, it should be noted that additional lawsuits challenging the constitutionality of the BCFP are currently pending in the U.S. Courts of Appeal for the Second and Fifth Circuit.  In addition, there remains a second constitutionality case before the Ninth Circuit and another where the defendant has requested review by the U.S. Supreme Court.