WASHINGTON—The CFPB has appealed the U.S. Court of Appeals initial ruling that found its structure unconstitutional.
The Bureau on Friday filed a petition in the U.S. Court of Appeals for the D.C. Circuit challenging the court’s ruling on grounds that the decision would interfere with Congress’s ability to create independent agencies led by a single director.
CUToday.info reported the original ruling here.
“However, there is no guarantee that the appeal will be granted because a majority of the sitting active judges must vote to hear the CFPB’s petition,” NAFCU noted in its analysis.
The court ruling came in a case filed by a bank that had been subjected to a ruling by the CFPB.
In its petition, 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.
The court did not shut down the Bureau, allowing it to operate as a regular executive agency for the time being, but did give the president the power to remove and supervise the director, NAFCU noted. If the court’s decision is upheld, CFPB Director Richard Cordray could be replaced with a new director by president-elect Donald Trump before his term ends in 2018.
NAFCU said it also supports pending legislation that would move the Bureau from a single director to a five-person commission.