Seila Law Case Final Word on CFPB Constitutionality, Judge Says

The Consumer Financial Protection Bureau’s independent funding mechanism is not a constitutional violation, a New York federal judge ruled.

The U.S. Supreme Court’s June ruling in Seila Law v. CFPB cured all of the constitutional defects at the bureau, including the funding question, Judge Kenneth M. Karas of the U.S. District Court for the Southern District of New York said Tuesday in a case brought by a New York debt collection firm.

The Law Offices of Crystal Moroney P.C. said the Supreme Court ruling, which determined that the president has broad power to fire the CFPB director, didn’t address whether ...