CFPB says structure is ‘unconstitutional’
After years of lawsuits challenging the CFPB’s single-director structure and calls from various stakeholders – including NAFCU – to change its governance to a bipartisan commission, the Trump administration has determined that the bureau’s current structure is unconstitutional.
As a result, CFPB Director Kathy Kraninger notified congressional leaders Tuesday that the bureau will no longer defend its structure in lower-level cases.
NAFCU is supportive of legislation to reform the bureau’s governance structure to a bipartisan commission, as well as other reforms pursued by Congress.
In a brief to the U.S. Supreme Court, the administration indicated that language in the Dodd-Frank Act saying that the president can only remove a director for “inefficiency, neglect of duty, or malfeasance in office” violates the Constitution.
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