The Consumer Financial Protection Bureau has filed more lawsuits against lawyers than almost any other group, according to an analysis by the National Law Journal, bringing six suits against legal services providers. Only the banking industry — also the subject of six suits by the CFPB — was equally stung. In addition, the agency has asserted that debt-collection lawyers are subject to its direct supervision, including on-site examination of books and records. The CFPB's first enforcement action was against the Gordon Law Firm in Los Angeles and its founder Chance Gordon in July 2012. Since then, suits against lawyers and law firm support-service providers have been a major part of the CFPB's docket. What makes the actions so surprising is that the Dodd-Frank Act that created the agency specifically exempts lawyers from CFPB oversight. Section 1027 of the act states that the agency "may not exercise any supervisory or enforcement authority with respect to an activity engaged in by an attorney as part of the practice of law." A CFPB spokesman acknowledged that limitation, but said that "nothing prevents the bureau from exercising its authority with respect to a consumer financial product or service offered or that is provided outside of the scope of an attorney-client relationship." Read more.
