Supreme Court to Consider the Constitutionality of the CFPB

On Friday, the U.S. Supreme Court said it will review a challenge to the constitutionality of the Consumer Financial Protection Bureau.

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The CFPB was created by the Dodd-Frank Act in response to the 2008 financial crisis. Unlike the heads of other federal agencies, the bureau is led by a single director who serves a five-year term and can only be removed for “inefficiency, neglect of duty, or malfeasance in office.”

The Department of Justice argues that President Donald Trump should have the ability to hire and fire at will. CFPB Director Kathy Kraninger supports the Trump Administration assertion that the bureau’s leadership structure is unconstitutional.

The Leagues and CUNA have consistently urged Congress to support a multi-person, bipartisan commission to lead the bureau as was originally proposed by the Obama Administration as consumers would benefit from increased accountability and oversight.