5th Circ. Says CFPB Structure Is Constitutional

Law360 (March 4, 2020, 11:45 AM EST) -- A Fifth Circuit panel affirmed on Tuesday the special tenure protections enjoyed by the director of the Consumer Financial Protection Bureau as "valid and constitutional" in a 2-1 split, siding with other circuit courts that have ruled on the agency's constitutionality.

Payday lender All American Check Cashing Inc. had argued that a CFPB enforcement action accusing it of abusive business practices should be void because of constitutional flaws in the CFPB's structure — namely, that it is led by a single director, currently Kathleen Kraninger, who cannot be fired by the president except for cause.

But a majority of the panel upheld...

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