March 30, 2017 Top Story

Federal Court Deems CFPB to be “Unconstitutionally Structured”

D.C. Circuit gives president power to fire CFPB director, but says agency can still operate

Onika K. Williams

The structure of the Consumer Financial Protection Bureau (CFPB) violates the U.S. Constitution because it is an independent agency whose director possesses authority that is unchecked by the president or other agency leaders, says the U.S. Court of Appeals for the D.C. Circuit. PHH Corporation v. Consumer Financial Protection Bureau reduces the powers of the CFPB single-director structure by striking down the provision the Dodd-Frank Act of 2010 that limits the president from removing the director only for cause.

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