Breaking: CFPB Ruled Unconstitutional by Federal Court

The U.S. Court of Appeals for the D.C. Circuit ruled that the CFPB’s structure is unconstitutional; but the court allowed the CFPB to continue to function by giving the President the power to remove and supervise the director.

“The CFPB’s concentration of enormous executive power in a single, unaccountable, unchecked director not only departs from settled historical practice, but also poses a far greater risk of arbitrary decision-making and abuse of power, and a far greater threat to individual liberty, than does a multi-member independent agency,” the U.S. Court of Appeals for the District of Columbia said in its ruling.

CUNA President and CEO Jim Nussle issued the following statement:

“I applaud the ruling from the U.S. Court of Appeals for D.C. Circuit regarding the PHH case against the Consumer Financial Protection Bureau, in that it will establish a meaningful check and balance and bring needed accountability to the Director’s role. This ruling confirms CUNA’s concern that the structure of the CFPB is flawed and that an unchecked, independent director who answers to no one can’t lead to good public policy. CUNA continues to support a five-person commission for the CFPB instead of its current structure.”

Anthem will update this story as it develops.

Questions about this story? Contact Eric Horvath: 503.350.2222, ehorvath@nwcua.org.

Posted in Advocacy News, CUNA, Federal, NWCUA.