RD Legal Funding, LLC (RD Legal) recently filed a motion to dismiss the joint lawsuit filed by the Consumer Financial Protection Bureau (CFPB) and the New York State Attorney General’s office (NYAG). The motion seeks the dismissal of the complaint based on, among other things, the unconstitutional structure of the CFPB; the overreach by the CFPB in its attempt to regulate transactions over which it has no jurisdiction; and the improper characterization of RD Legal’s transactions as loans rather than true sales transactions.
RD Legal is a legal finance company whose business includes the purchase of portions of plaintiffs’ proceeds from legal settlements or judgments. In the motion to dismiss, RD Legal argues that “the CFPB’s unprecedented structure violates fundamental constitutional principles of separation of powers, and the CFPB should be struck down as an unconstitutional administrative agency.” RD Legal also argues that it is not subject to the Consumer Financial Protection Act and the CFPB is wrong in its contention that the underlying settlement proceeds are not assignable. Several news outlets have reported that other companies, along with the U.S. Department of Justice, are challenging the CFPB’s structure on constitutional grounds.
RD Legal Funding is a New Jersey-based legal funding company that has been in operation since 1998 when it began developing innovative solutions to legal funding needs. The company has assisted plaintiffs’ attorneys and their clients with their funding needs ever since.
Michael D. Roth
Boies Schiller Flexner LLP
Source: RD Legal Funding, LLC
Related Links: www.legalfunding.com