CFPB arguing that unconstitutional structure shouldn’t invalidate old decisions

The Consumer Financial Protection Bureau is asking at least three federal courts to affirm decisions the agency has made, even though the U.S. Supreme Court ruled earlier this summer that the structure of the agency was unconstitutional.

The agency said if federal courts do not affirm those decisions, doubts could be raised about all of the actions the CFPB has taken since it was created in the Dodd-Frank Act that passed in 2010.

Earlier this summer, the Supreme Court ruled that because the agency’s director could only be removed for cause, the structure of the bureau was unconstitutional.

Following the ruling, Director Kathleen Kraninger issued a statement ratifying the agency’s decisions since it was created. She said she was issuing the statement to address any questions about the legitimacy of the agency decisions in light of the Supreme Court ruling.

 

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