Supreme Court’s Seila Law Decision Brings Clarity to the CFPB (for Now)

Hudson Cook, LLP

In June, the Supreme Court struck down the leadership structure of the CFPB as unconstitutional. (The case is Seila Law LLC v. CFPB, No. 19-7 (June 29, 2020), and the decision is here.) The case resolves a long-simmering question over the CFPB’s viability but the Court’s other holding — that the offending provision limiting the President’s ability to remove the director can simply be severed from the rest of the statute — ensures that the agency will continue to operate.

Going forward, the director of the CFPB is now considered an “at will” appointee, meaning the President can remove her at any time, for any reason. The current director, Kathy Kraninger, has said all along that she considers herself to serve at the pleasure of the President, suggesting that the Supreme Court’s decision will have little practical impact. Nonetheless, important questions remain over whether actions taken by the Bureau prior the Supreme Court’s decision are still valid. Since the decision, Director Kraninger issued a statement purporting to “ratify” some of the Bureau’s prior rulemaking. Whether that will be enough to insulate the Bureau from further legal challenges remains to be seen.

Originally published in Non-Prime Times, the official publication of NAF Association, on July 27, 2020.

Please see full Article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Hudson Cook, LLP | Attorney Advertising

Written by:

Hudson Cook, LLP

Hudson Cook, LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.