February 16, 2017

Court to rehear CFPB constitutionality case

The U.S. Court of Appeals for the D.C. Circuit on Thursday granted the CFPB's petition to reconsider the court's initial ruling that found its structure unconstitutional.

The court also ordered that the three-judge panel's ruling this past October be vacated and that oral arguments will be heard May 24.

"NAFCU will continue to monitor the developments in this litigation," said NAFCU President and CEO Dan Berger.

In its petition filed in November, the CFPB argued against the court's decision on grounds that it would interfere with Congress's ability to create independent agencies led by a single director. The CFPB pointed to other independent agencies, including the Social Security Administration, the Federal Housing Finance Agency and Office of Special Counsel, to help make its case.

After the court's initial ruling in October, NAFCU urged an immediate moratorium at the bureau on any rulemakings not already implemented.