The U.S. Court of Appeals for the District Court of Columbia held the Consumer Financial Protection Bureau (CFPB) can keep its powers.  On October 11, the court of Appeals held that while the CFPB’s single director director removable only for cause structure is unconstitutional,  other portions of the statute authorizing the CFPB are constitutional.

 In PHH Corp. v. CFPB, 2016 WL 5898801 (D.C. Cir. Oct. 11, 2016), the Court held the CFPB may continue to operate business.  The only change is that the President will have more power to remove the director of the CFPB.  The opinion should have no immediate impact because President Obama has no interest in removing the director of the CFPB, Richard Cordray.  While its an election year, the next president will be able to appoint a new director soon than the completion of Director Cordray’s term which will expire in 2018.

Opponents of the CFPB, such as big banks, debt collectors and consumer reporting agencies, may act like this is a win against regulation and enforcement of the rogue financial industry; however, the decision (if not reversed) will undercut claims that the agency is unaccountable.  Time will tell.

The Adkins Firm supports the CFPB and consumers.  We represents victims of identity theft and consumers with credit report or background report errors.  If you are a victim of identity theft or have errors on a credit or background report, contact us 24/7 at 1-800-263-9091.