HARTFORD, Conn.—Seventeen attorneys general have filed a motion to intervene in the case of PHH Corporation v. CFPB in order to defend the constitutionality of the Bureau’s structure.
The case is currently before the U.S. Court of Appeals for the District of Columbia Circuit. In its October ruling, the court said the CFPB’s structure is unconstitutional because it is headed by a single director who can be removed only for cause. The CFPB filed a petition for rehearing of the decision, which is pending before the court.
“The attorneys general argue that if the court’s ruling is upheld, the power of state attorneys general to effectively protect consumers against abuses in the financial industry would be jeopardized, and the CFPB’s ability to stand against political pressure would be lessened,” stated NAFCU in its analysis.
The filed motion was led by Connecticut Attorney General George Jepsen and signed by attorneys general in Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.
NAFCU said it will continue to monitor the suit for its impact on credit unions. After the October decision, NAFCU and CUNA both urged an immediate moratorium at the bureau on any rulemakings not already implemented.