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July 22, 2013

Suit targets CBPB's data gathering

July 23, 2013 – A firm that supports debt settlement attorneys filed suit in federal court Monday challenging data-gathering activities of the CFPB.

The suit, filed by a debt settlement attorney and the firm Morgan Drexen Inc., claims the CFPB sought from the firm the names, addresses and income data about clients of bankruptcy lawyers who use the firm's services. Morgan Drexen says the data sought are confidential and privileged and that the CFPB is overstepping its bounds in demanding it.

Filed in the U.S. District Court for the District of Columbia, the suit asks the court to order a halt in these activities and to declare the CFPB's structure to be unconstitutional. It also wants the court to declare as unconstitutional those provisions of the Dodd-Frank Act establishing the CFPB.

The Government Accountability Office has agreed to a request from Sen. Mike Crapo, R-Idaho, that it study the CFPB's data collection activities. NAFCU has also raised concerns about the CFPB's data collection activities.