Legal NewsLine Quotes Associate Donnelly McDowell on Consumer Financial Protection Bureau
June 1, 2016

Associate Donnelly McDowell was quoted in the Legal NewsLine article “Court Checks CFPB's Authority to Investigate For-Profit College Accreditation.” In its April 21 opinion, the U.S. District Court for the District of Columbia held that the Consumer Financial Protection Bureau (CFPB) -- established by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 and tasked with overseeing the financial services industry -- did not have the authority to issue a civil investigative demand to the Accrediting Council for Independent Colleges and Schools (ACICS). Mr. McDowell noted that this case marks the first time a respondent has challenged the scope of a CFPB CID through litigation. He further stated the court’s decision ruling in favor of ACICS could potentially embolden other groups to challenge broad-sweeping CIDs issued by the CFPB in the future, or at least result in the CFPB acting more cautiously when issuing CIDs. “The decision may cause the CFPB to tread a little more carefully when it describes the scope and purpose of CIDs, particularly in investigations that relate to conduct that may be in a gray area of the bureau’s jurisdiction,” Mr. McDowell said.

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