Is There Really No Statute of Limitations for Many CFPB Enforcement Cases?

The oral argument before the DC Circuit in the Consumer Financial Protection Bureau’s (CFPB) case against PHH Corporation has garnered a fair amount of coverage in light of the panel’s apparent interest in arguments about the constitutionality of the CFPB’s structure. One of the key issues raised in PHH that has received relatively less notice was whether a statute of limitations applied to the matter. PHH is one of a number of CFPB enforcement cases in which the CFPB has asserted that no statute of limitations applies.

The DC Circuit panel was skeptical about this contention, with one of the judges raising 28 U.S.C. 2462 as a possible statute of limitations. This Legal Update explains why 28 U.S.C. 2462 could be a significant constraint on the CFPB’s authority to punish entities for older violations of numerous statutes.