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November 22 2016

Court Rules Structure of CFPB is Unconstitutional

The U.S. Court of Appeals for the District of Columbia recently ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional and should operate as other executive agencies, such as the Department of Justice and the Department of Treasury, and will be held accountable by the President. The ruling is the result of a case in which PHH Corporation sought to vacate a CFPB enforcement action that carried a large penalty, arguing that the CFPB's status as an independent agency headed by a single Director violated Article II of the Constitution.