Today, the Competitive Enterprise Institute (CEI), the 60 Plus Association, and the State National Bank of Big Spring together filed an amicus brief in support of a lawsuit, PHH Corporation v. CFPB, challenging the constitutionality of the Consumer Financial Protection Bureau.
“Since 2010, the Consumer Financial Protection Bureau has wielded vast power to regulate America’s financial institutions, and the bureau’s subsequent attacks on legitimate business practices and institutions have harmed consumers,” said Sam Kazman, CEI General Counsel. “But CFPB regulators lack any accountability to Congress or the President, a set up that violates the Constitution’s separation of powers system meant to protect people from government abuse of power. We hope the court takes swift action against the lawlessness of the CFPB and its director, Richard Cordray.”
In the amicus brief, CEI addresses the constitutional issues raised by the PHH case: whether the structure and operation of the CFPB violate the separation of powers. The case is currently before the U.S. Court of Appeals for the District of Columbia Circuit, which will hear the case in October 2017. Last year, a three judge panel from the appeals court had ruled that the CFPB’s leadership structure was unconstitutional and cancelled a $103 million fine imposed by the CFPB against mortgage lender PHH Corporation.
CEI, the 60 Plus Association, and the State Bank of Big Spring are plaintiffs in a separate but similar lawsuit challenging the constitutionality of the CFPB, State National Bank of Big Spring v. CFPB, which is awaiting a ruling by the U.S. District Court for the District of Columbia.
Find out more about State National Bank of Big Spring v. CFPB