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McHenry Applauds Supreme Court Ruling on CFPB’s Unconstitutional Structure

McHenry Applauds Supreme Court Ruling on CFPB’s Unconstitutional Structure

June 29, 2020 

Today, the U.S. Supreme Court ruled in Seila Law LLC v CFPB that the Consumer Financial Protection Bureau’s (CFPB) leadership structure is unconstitutional. The Court agreed with arguments made by House Republican leadership and Financial Services Committee Republicans that the CFPB’s leadership structure, which features a single head removable only for inefficiency, neglect, or malfeasance violates the separation of powers.

“Today, the Supreme Court recognized what Republicans have been saying for years—the CFPB’s leadership structure is unconstitutional,” said Ranking Republican Patrick McHenry (NC-10). “The responsibility to fix it now shifts back to Congress. I hope my Democrat colleagues will work with us to bring the CFPB within the boundaries of the Court’s opinion to create an accountable agency that works for all American consumers.”

In December, House Minority Leader Kevin McCarthy (CA-23), Minority Whip Steve Scalise (LA-1), and a majority of the Republican members of the House Financial Services Committee, led by Ranking Member McHenry, filed an amicus brief to assist the Supreme Court in its consideration of the constitutionality of the CFPB.

As Republicans have stated since the passage of the partisan Dodd-Frank Act, Democrats created an unaccountable agency and regret they didn’t go far enough in mandating outcomes at the CFPB. Financial Services Committee Democrats have attempted to curtail the current CFPB Director’s actions and rejected Republicans’ attempts to meaningfully reform the structure of the Bureau by putting it on budget and creating a bipartisan board. While Republicans have repeatedly applauded Director Kraninger’s work to provide more transparency, the CFPB’s issues go beyond any one director and without reform it remains unaccountable and unconstitutional.

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