TNCA Applauds Court Decision Protecting Consumer Bureau

Today, the U.S. Court of Appeals for the D.C. Circuit decided in a 6-3 ruling that the Consumer Financial Protection Bureau’s (CFPB) current structure is constitutional and that the CFPB Director can only be removed by the President for cause.  Andy Spears, executive director of Tennessee Citizen Action, issued the following statement:

 

Today’s decision by the D.C. Circuit Court is a significant victory for working families across the country and here in Tennessee. This strong decision reaffirms that the CFPB’s independent authority to protect consumers from Wall Street greed by regulating the financial industry is constitutional, as has always been clear. Over the last five years, the CFPB has used its independent authority to provide nearly $12 billion in relief to 29 million consumers who were victims of unfair financial practices.

 

“From the court’s decision, it is abundantly clear that that the CFPB needs to be run by an independent director; Indeed, the court’s opinion reads that agency ‘independence shields the nation’s economy from manipulation or self-dealing by political incumbents.’ The current interim director, Mick Mulvaney, is anything but independent. In his day job as director of the Office of Management and Budget, Mulvaney reports directly to President Trump, defeating the entire purpose – as outlined by the D.C. Circuit Court – of an independent agency supposed to be insulated from political interference and influence. The president now needs to nominate a permanent director with a track record of protecting consumers.”

 

Leading consumer advocates and civil rights groups, including Americans for Financial Reform, Center for Responsible Lending, Leadership Conference on Civil and Human Rights, and the NAACP, previously submitted amicus briefs to the D.C. Circuit Court in support of the constitutionality of the CFPB’s structure.

 

For more on our consumer protection work, follow @TNCitizenAction


 

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