On March 17, a bank again asked the U.S. District Court for the Northern District of Texas to dismiss the CFPB’s suit against the bank. As previously covered by InfoBytes, the Bureau filed an amended complaint after the district court denied its request for a stay of the litigation so new leadership could evaluate the case (covered by InfoBytes here). The substance of the motion largely tracked the bank’s first motion to dismiss and argued the Bureau was unconstitutionally funded, that the suit violated the Bank’s due process rights by retroactively applying new statutory interpretations to past conduct, and the suit was untimely.
Prior to these arguments, the bank asserted the CFPB’s amended complaint contained only immaterial changes. According to the bank, while the amended complaint dropped five causes of action, the Bureau could have chosen not to defend those claims in opposition to its original motion to dismiss instead of filing an amended complaint. The bank further contended the filing of the amended complaint was an attempt to “end-run around” the district court’s prior order denying the Bureau’s motion to stay.
