Court upholds CFPB’s independence and says President can’t fire director without cause
January 31, 2018
WASHINGTON, D.C. – Consumers Union, the policy and mobilization division of Consumer Reports, praised the D.C. Circuit Court’s decision today finding that the Consumer Financial Protection Bureau’s independent structure is constitutional and that the President cannot fire its director without cause.
“Congress deliberately created the CFPB as an independent bureau to protect it from undue political pressure,” said Anna Laitin, Director of Financial Policy for Consumers Union. “But ever since then it’s been under attack by opponents seeking to weaken its ability to protect consumers. Consumers need an independent watchdog to protect them from financial fraud and predatory practices. Today’s decision is a major victory for working families that should put to rest once and for all any questions about the CFPB’s legitimacy. ”
“Despite today’s vindication in court, the CFPB’s future ability to protect consumers remains at risk,” said Laitin. “The CFPB’s Acting Director has taken a number of troubling steps that undermine the agency’s ability to stand up for consumers. Our country learned the hard way how lax consumer protections can have severe consequences for hardworking families and our economy. We can’t afford to take the financial cop off the beat and leave consumers vulnerable to scams and rip-offs.”
Michael McCauley, mmccauley@consumer.org, 415-902-9537 (cell), 415-431-6747 (office) or David Butler, dbutler@consumer.org, 202-462-6262