CBA Statement on Court BCFP Structure Ruling

June 21, 2018
Nick Simpson

 

CBA Statement on Court BCFP Structure Ruling

Ruling latest example of need for bipartisan commission at Bureau

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the U.S. District Court of the Southern District of New York ruled the Bureau of Consumer Financial Protection's structure is unconstitutional:

 

“The court’s ruling further proves one person should not have the sole authority over the financial lives of every American consumer. It creates uncertainty, limits opinions and turns the Bureau into a political pendulum, swinging with each new Administration. 

 

“The only solution is to act on the bipartisan legislation in the House of Representatives creating a bipartisan commission to lead the Bureau and ensure a diverse set of views have a seat at the table when important consumer financial policies are being crafted.

 

“CBA wants to thank Representatives Dennis Ross (R-Fla.), Kyrsten Sinema (D-Ariz.), Ann Wagner (R-Mo.), David Scott (D-Ga.), Financial Institutions Subcommittee Chair Blaine Luetkemeyer (R-Mo.), Vincente Gonzalez (D-Texas) and Chief Deputy Whip Patrick McHenry (R-N.C.) for introducing H.R. 5266, the Financial Product Safety Commission Act, to establish a Commission at the Bureau instead of a single director.

 

 

Background: In an opinion in the case of CFPB v. RD Legal Funding, LLC et al, Senior U.S. District Court Judge Loretta Preska ruled the CFPB “is unconstitutionally structured because it is an independent agency that exercises substantial executive power and is headed by a single Director.” In reaching this decision, Judge Preska adopted the conclusion of Judge Brett Kavanaugh’s dissenting opinion in PHH Corp. v. CFPB, and explicitly rejected the majority en banc opinion of the D.C. Circuit. Judge Preska’s solution to the constitutional quandary is to strike all of Title X (including the Bureau) from the Dodd-Frank Act.

 

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About the Consumer Bankers Association

The Consumer Bankers Association represents America’s retail banks above $10 billion in assets. We advance legislation and promote policies geared toward creating a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans. Follow us on Twitter @consumerbankers.