CFSA Statement on Court Ruling CFPB Structure Unconstitutional

June 22, 2018 | Federal & CFPB Regulations

Community Financial Services Association of America (CFSA) CEO Dennis Shaul released the following statement following a federal judge for the Southern District of New York ruling the Consumer Financial Protection Bureau (CFPB) to be unconstitutionally structured:

“We have said for years that the CFPB’s structure is unconstitutional and that partisan politics drove the Bureau under the leadership of former Director Richard Cordray, who led the agency as an unaccountable director with tremendous unchecked power. The Court’s ruling validates the claims in CFSA’s lawsuit, which also contends that the Bureau’s structure violates the U.S. Constitution’s separation of powers. The Bureau exercises wide-ranging executive power immune from supervision by both the President, who lacks the authority to fire the Director except for malfeasance, and Congress, which lacks the power to fund the Bureau through the appropriations process. As such, the Bureau’s final rule on small-dollar lending is an unconstitutional agency action and should be repealed.”