DOJ Brief Opposing CFPB Brings More Uncertainty

On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau's single-director structure violates the Constitution's separation of powers in the CFPB v. PHH Corporation case.

CFPB's Single Director Structure

The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in the wake of the 2008 financial crisis. Since then, the CFPB has acted as a watchdog over the consumer-finance industry, including loans, credit cards, and other financial products and services offered to consumers. The CFPB is headed by a single director who is appointed by the president, with the advice and consent of the Senate, for a term of five years. Under the law, the director may only be removed by the president "for cause."