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ARTICLE · 25 SEPTEMBER 2019

CFPB Decides Not To Defend Constitutionality Of Its Leadership Structure

Morrison Foerster
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On September 17, 2019, two developments took place with respect to the constitutionality of the structure of the Consumer Financial Protection Bureau (CFPB or Bureau), an issue that has been litigated for several years.

United StatesConsumer Protection
Joseph Palmore
Joseph Palmore
Obrea Poindexter
Obrea Poindexter
Jeremy Mandell
Jeremy Mandell
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On September 17, 2019, two developments took place with respect to the constitutionality of the structure of the Consumer Financial Protection Bureau (CFPB or Bureau), an issue that has been litigated for several years.  First, the CFPB and the Department of Justice (DOJ) filed a brief in the U.S. Supreme Court, urging the Court in the case of Seila Law LLC v. CFPB to review the constitutionality of the Bureau's leadership structure.  Second, CFPB Director Kathy Kraninger wrote letters to Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Cal.) to advise them of the Bureau's determination that the Dodd-Frank Act provision stating that the Bureau director may only be removed "for cause" is unconstitutional.

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