Banking Law News

Supreme Court Risks Creating ‘Mutant’ CFPB, Law Firm Says

Dec. 9, 2019, 10:37 PM

The U.S. Supreme Court risks creating a “mutant version” of the Consumer Financial Protection Bureau if the justices elect to fix problems with the bureau’s constitutionality by changing the director’s employment status, a California debt collection firm said.

In its first brief filed Dec. 9 with the Supreme Court, Seila Law LLC said that the CFPB’s single-director leadership structure, which only allows the president to fire the director for cause, is a blatant violation of the Constitution’s separation of powers clause.

The Trump administration and the CFPB’s current director agree with that assessment, but disagree with the remedy proposed by...

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