Last week, the U.S. Court of Appeals for the D.C. Circuit upheld, in an unanimous decision, a district court ruling that a civil investigative demand (CID) issued by the Consumer Financial Protection Bureau (CFPB) against the Accrediting Council for Independent Colleges and Schools (ACICS) is unenforceable. Specifically, the Court held that the CFPB failed to provide ACICS with sufficient notice as to the nature of the conduct and the alleged violation under investigation, as required by statute. The decision represents the first time in decades that a federal appeals court has struck down an administrative subpoena issued by the federal government.
Multiple publications featured news of the victory, including the Wall Street Journal, Forbes, National Law Journal, and Law360.