Connecticut Department of Banking’s Debt Negotiation Investigation Violated Separation of Powers, Commonwealth Law Group and Commonwealth Servicing Group Argue

Background

The Connecticut Department of Banking initiated an investigation into the debt negotiation practices of Commonwealth Law Group and Commonwealth Servicing Group LLC. The firms state that the investigation violates constitutional separation of power provisions.

Violation of Constitutional Separation of Powers

According to the Commonwealth Law Group and Commonwealth Servicing Group LLC, the Connecticut Department of Banking has no regulatory authority over legal services provided by attorneys. They argue that only the state’s judicial branch has the right to regulate legal services provided to clients by attorneys. Therefore, the investigation violates the constitutional principle of separation of powers.

Implications

The argument of the Commonwealth Law Group and Commonwealth Servicing Group LLC may have far-reaching implications. If their argument prevails, it could mean that the Connecticut Department of Banking has overstepped its regulatory authority and that investigations of this nature would fall under the jurisdiction of the judicial branch.

Conclusion

The case presents an interesting legal question regarding the separation of powers. It remains to be seen how the Connecticut Supreme Court will rule in this matter.

Originally Post From https://www.law360.com/legalethics/articles/1856527/conn-justices-told-banking-agency-s-probe-overstepped

Conn Justices Told Banking Agency’s Probe Overstepped Law360

Connecticut Department of Banking’s Debt Negotiation Investigation Violated Separation of Powers, Commonwealth Law Group and Commonwealth Servicing Group Argue

Background

Violation of Constitutional Separation of Powers

Implications

Conclusion

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