The Consumer Financial Protection Bureau and lawyers representing PHH Corp. will step before the entire Court of Appeals for the District of Columbia tomorrow and make their arguments that could shape the future of the CFPB.
A three-judge panel from the D.C. Appeals court ruled last year that the leadership structure of the CFPB is unconstitutional and should be changed, allowing the president to fire the agency’s director for any reason, instead of just for cause as is currently the case. The appeals court also set aside a $100 million fine levied against PHH by the CFPB. The CFPB fought the decision, requesting an en banc hearing before the entire Appeals Court.
While initially behind the CFPB when the ruling was announced last October, the federal government has since switched sides, thanks to a new administration. The Justice Department filed an amicus brief in the case supporting PHH and asking for President Trump to have the power to fire CFPB Director Richard Cordray for any reason.
Analysts are predicting it could take months before a ruling is issued by the entire Appeals Court. The industry is already awaiting a decision from the D.C. Appeals court on a lawsuit filed by ACA International against the Federal Communications Commission, seeking to undo changes that were made to the Telephone Consumer Protection Act nearly two years ago.
Those not able to attend the hearing should be able to livestream it here.
