WASHINGTON, Aug. 2, 2013 (GLOBE NEWSWIRE) -- The CFPB structure has faced constitutional challenges on a number of political and judicial fronts. The CFPB has managed to evade all examinations of its fundamental make-up, this time on a procedural technicality. On Thursday, Federal District Court Judge Ellen Huvelle granted the Motion to Dismiss filed by the Consumer Financial Protection Bureau this week, dismissing for lack of standing the constitutional challenge brought by State National Bank of Big Spring, the Competitive Enterprise Institute, and 11 states.
"The CFPB was able to dodge the ultimate question of its structural legitimacy for now," said Venable LLP partner Randall K. Miller, the attorney representing Morgan Drexen in its case against the CFPB.
"But our case is very different, because we are the target of an over reaching and harmful enforcement proceeding that has reached the point of threats of an imminent lawsuit," Miller said.
Last week, attorney Kimberly Pisinski and Morgan Drexen, Inc., a software and business support services company, sued the CFPB on grounds the agency is not constitutional, and that the agency has attempted to data mine the personal financial details and attorney client communications of thousands of Pisinski's clients by demanding information protected by the attorney-client privilege.
"My clients have a legitimate right to their expectation of privacy," said Pisinski, an attorney licensed in Connecticut. Pisinski, whose practice primarily focuses on child advocacy issues, uses Morgan Drexen's software platform to help her with her clients, including those who are seeking bankruptcy protection.
"The documents demanded by the CFPB include the names, addresses, social security numbers, names of debtors, amounts owed, all attorney notes regarding attorney client communications, the length of the communications, and other personal information that is NOT public information," said Morgan Drexen CEO Walter Ledda.
"The attorneys who hire Morgan Drexen have told us not to release this information about their clients. Doing so would destroy the reputation of the company, not to mention, the long-standing right of a consumer to the attorney-client privilege," he said.
Last week, in the wake of the lawsuit against the CFPB, the business support services company launched a website, http://MorganDrexenvsCFPB.com, to chronicle press coverage regarding the CFPB.
About Morgan Drexen
Morgan Drexen (www.morgandrexen.com) provides businesses across the United States, including law firms that practice bankruptcy, with outsourced professional services. These services are designed to reduce costs and make legal representation affordable for consumers. Morgan Drexen offers attorneys automated platforms for complex document management, client databases, paralegal and paraprofessional services, call centers, client screening, and marketing.
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