CFPB Critics to Supreme Court: The Agency Must Go

January 2, 2020

The Consumer Bankers Association has pushed for a compromise that would protect the CFPB head from presidential firings but have the director answer to a bipartisan commission to oversee the agency.

“If the Court determines the Bureau’s single-director structure is unconstitutional (and assuming the Court cannot itself create the bipartisan commission Congress would have desired), the appropriate remedy is to invalidate Title X in its entirety and leave it to Congress, exercising legislative judgment that only it possesses, to formulate a new, permissible structure,” the CBA wrote in a brief. “If Congress cannot do so, the result would not be the wholesale elimination of federal consumer-financial protection, but reversion to the regime that existed prior to Dodd Frank’s enactment, when most of the powers the Bureau now exercises were assigned to other, constitutionally permissible independent agencies.”