Released: January 31, 2018
Consumers win appeal for CFPB independence
Consumers scored a big win today when an appeals court ruled that the Consumer Financial Protection Bureau’s (CFPB) structure as an independent agency is constitutional.
The ruling by the full U.S. Court of Appeals confirms that the CFPB’s independent director can only be fired for cause.
“This ruling should remind the Trump Administration that consumers deserve a consumer watchdog that focuses on financial fairness and an accountable marketplace,” says Linda Sherry, Consumer Action’s Director of National Priorities. “Far from independent, the CFPB is temporarily being run by a Trump political appointee who’s made it his mission to dismantle the CFPB from within. The President must nominate a permanent director who is committed to consumer protection.”
Acting CFPB Director Mick Mulvaney has chosen to swiftly setback as many of the consumer bureau’s protections as he can. He has delayed the Bureau’s prepaid card rule, announced plans to revise the payday loan rule, and has forced the Bureau to back down from lawsuits that would have helped consumers avoid payday loan debt traps. He has now said he plans to restructure some of the Bureau’s key consumer-facing departments from its Complaints unit to the Office of Fair Lending.
Consumer Action was part of a group of advocates that had filed an amicus brief in today’s case, PHH Corp. vs. Consumer Financial Protection Bureau, in support of the Bureau’s independence and single director structure.