The Consumer Financial Protection Bureau (CFPB) structure is constitutional, and its director can only be removed with cause, a U.S. appeals court decided Wednesday. The decision in PHH Corp. v. CFPB erases a lower court ruling that the CFPB’s structure is unconstitutional.
“CUNA maintains that the best leadership structure for the CFPB is a multi-member commission, as recent leadership disputes have shown. Financial institutions and consumers need continuity at the CFPB,” said CUNA President/CEO Jim Nussle. “A leadership commission would have avoided a lot of legal wrangling and provided certainty at an agency that has major influence over the financial services marketplace.”
CUNA filed a joint trades amicus brief in March 2017 on PHH v. CFPB focusing on the non-constitutional issues in the case.
Replacing the single director at the CFPB with a multi-person commission is a goal of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.