On July 22, 2013, Morgan Drexen Integrated Systems and Connecticut attorney Kimberly Pisinski filed a lawsuit in federal court challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB). The lawsuit states the CFPB lacks the checks and balances required of a governmental agency. In other words, it is an agency that answers to no one. The suit also accuses the CFPB of grossly overreaching its authority by attempting to “data mine” the confidential bankruptcy records of thousands of American consumers. In addition, the complaint alleges the CFPB is attempting to regulate attorneys, a function reserved for state bars.

The complaint, filed in United States District Court for the District of Columbia, states:

“Plaintiffs bring this action because CFPB’s structure insulates it from political accountability and internal checks and balances in violation of the United States Constitution. Unbridled from constitutionally-required accountability, CFPB has engaged in ultra vires and abusive practices, including attempts to regulate the practice of law (a function reserved for state bars), attempts to collect attorney-client protected material, and overreaching demands for, and mining of, personal financial information of American citizens, which has prompted a Government Accountability Office (“GAO”) investigation, commenced on July 12, 2013. Serious constitutional questions have been raised about CFPB’s structure and insulation from mandatory checks and balances, but to date, no court has passed on these questions.”

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