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CFPB v. Law Offices of Crystal Moroney

CASE: Consumer Financial Protection Bureau v. Law Offices of Crystal Moroney, P.C.

STATUS: Active

NCLA ROLE: Counsel


ORIGINAL COURT: U.S. District Court for the Southern District of New York

DECIDING COURT: U.S. Supreme Court

OPENED: December 18, 2019

AGENCIES: Consumer Financial Protection Bureau


Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

The New Civil Liberties Alliance filed a lawsuit challenging, among other things, the Consumer Financial Protection Bureau’s (CFPB) leadership and funding structures. In Law Offices of Crystal Moroney v. Bureau of Consumer Financial Protection, NCLA asserted that CFPB’s leadership structure violated the Take Care and Appointments Clauses of Article II of the United States Constitution. Since CFPB’s single-Director was only removeable for cause, the President was unconstitutionally prohibited from exercising control or oversight of an executive agency’s enforcement activities and resource allocation. The U.S. Supreme Court agreed with NCLA’s argument, finding the for-cause removal provision unconstitutional in Seila Law v. CFPB (NCLA filed as amicus curiae in that case).

CFPB tried to compel production of documents and information related to the Crystal Moroney’s law firm’s debt collection practices over several years. It also unlawfully sought confidential and privileged attorney-client material generated in the course of Ms. Moroney’s practice of law. Moreover, the agency pursued its enforcement action in the wake of Seila Law with an invalid attempt to ratify the prior unconstitutional issuance of the CID and related administrative proceedings.

The Supreme Court had a chance to address NCLA’s argument that Congress unlawfully divested its legislative appropriations power when it gave CFPB the ability to draw funding directly from the Federal Reserve, without Congressional appropriations committee oversight or annual appropriations. Congress has surrendered the power of the purse to the President and an executive branch agency, violating Article I of the Constitution. In June 2023, NCLA filed a petition for a writ of certiorari with the Supreme Court, asking the justices to resolve this issue. The Supreme Court placed a hold on NCLA’s certiorari petition until after it issued its decision in CFPB v. Community Financial Services Association of America, a case argued in the Supreme Court in October 2023 that raised identical separation-of-powers issues.

In May 2024, the Supreme Court denied NCLA’s petition for certiorari.

Crystal Moroney, Plaintiff

Mark Chenoweth
President and Chief Legal Officer
Margaret A. Little
Senior Litigation Counsel

Memorandum for Respondent

July 24, 2023 | Read More

Petition for a Writ of Certiorari

June 21, 2023 | Read More

Appellee Consumer Financial Protection Bureau's Response in Opposition to Motion to Stay the Mandate

May 8, 2023 | Read More

Stay of Mandate Pending the Filing of a Petition for a Writ of Certiorari

April 28, 2023 | Read More

Decision of the U.S. Court of Appeals for the Second Circuit

March 23, 2023 | Read More


NCLA Asks Supreme Court to Reverse Second Circuit, Hold CFPB’s Funding Method Unconstitutional

June 22, 2023 | Read More

NCLA Challenges Constitutionality of CFPB’s Unique, Congress-Free Funding Structure

March 8, 2021 | Read More

WATCH: NCLA’s Case Video Shows the CFPB’s “Knee-Buckling” Power to Punish Private Citizens

October 30, 2020 | Read More

SDNY Judge Recognizes CFPB Acted Unconstitutionally, but Still Enforces CID Against NCLA Client

August 18, 2020 | Read More

NCLA Disputes CFPB Enforcement Action on Ground that Agency Is Unconstitutional post-Seila Law

July 16, 2020 | Read More


CFPB Destroys Small Law Firm & 2nd Circuit Superfluously Expounds on Constitutionality

Collection Advisor

May 12, 2023

CFPB Pushes Back On NY Firms Constitutional Challenge

February 6, 2023

Why Is Congress Giving Its Powers Away?

February 6, 2023

NY federal district court grants CFPB petition to enforce CID ratified by Director Kraninger

February 6, 2023

Judge lets CFPB demand records from N.J. lawyer despite SCOTUS ruling

February 6, 2023




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