SCOTUS Will Hear Arguments in CFPB Structure Constitutionality Case in March

High profile case before the U.S. Supreme Court has potential implications for the future of the bureau.

12/2/2019 8:00 AM

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SCOTUS Will Hear Arguments in CFPB Structure Constitutionality Case in March

A monumental case focused on the constitutionality of the Consumer Financial Protection Bureau’s leadership structure will continue before the U.S. Supreme Court with oral arguments on March 3, 2020.

Dubbed as one of the “highest-profile” cases for the court in its upcoming session by SCOTUSblog reporter Amy L. Howe, Seila Law v. Consumer Financial Protection Bureau presents the Supreme Court with the decision to determine whether the provision of the law allowing the president to remove the agency's director only for cause violates the constitutional separation of powers.

The court will also review, whether, if the CFPB “is found unconstitutional on the basis of the separation of powers, it can be severed from the Dodd-Frank Act,” Howe reports.

In Seila Law, a 9th Circuit panel unanimously ruled the CFPB’s single director structure was constitutional, prompting Seila to file a brief asking the Supreme Court to hear the case to review that finding. This marks the first time since the CFPB’s inception that agency leadership and the DOJ will not defend the structure of the bureau in litigation.

The accounts receivable management industry has a huge stake in the case and will continue to monitor the legal challenge as it unfolds, in particular as ACA and in the industry continue to seek clarity from the CFPB regarding compliance with the Fair Debt Collection Practices Act. The CFPB has taken important steps to address the industry’s concerns by issuing a Notice of Proposed Rulemaking to update the FDCPA – which ACA commented on in a 154-page letter.

ACA also presents more analysis of the implications of the case on ACA Cast: Legal Review: Understanding the Challenge to the Constitutionality of CFPB’s Leadership Structure.

It’s worth noting that the ongoing questions surrounding the constitutionality of the bureau’s leadership structure are pertinent for all industries impacted by regulatory policies and enforcement decisions made by the CFPB. And at this point, it’s up in the air as to how the court will rule. Jessica Klander, shareholder at Bassford Remele, provides insights on the most important issues relevant to this case and the bigger picture related to the potential future of the CFPB.

Learn more about ACA’s advocacy efforts and strategy during a complimentary, members-only Hot Topic webinar Dec. 17. Speakers include CEO Mark Neeb, Jack Brown III, president Gulf Coast Collection Bureau Inc., Leah Dempsey, vice president, senior counsel, federal advocacy, and Andrew Madden, vice president, state unit and government affairs. Join ACA’s Advocacy Team for a recap of this year’s efforts and a discussion on the strategy for 2020, registration is open now.

Read more on the case in ACA’s coverage: SCOTUS to Hear Possible Game-Changing CFPB Case


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

SCOTUS Will Hear Arguments in CFPB Structure Constitutionality Case in March

A monumental case focused on the constitutionality of the Consumer Financial Protection Bureau’s leadership structure will continue before the U.S. Supreme Court with oral arguments on March 3, 2020.

Dubbed as one of the “highest-profile” cases for the court in its upcoming session by SCOTUSblog reporter Amy L. Howe, Seila Law v. Consumer Financial Protection Bureau presents the Supreme Court with the decision to determine whether the provision of the law allowing the president to remove the agency's director only for cause violates the constitutional separation of powers.

The court will also review, whether, if the CFPB “is found unconstitutional on the basis of the separation of powers, it can be severed from the Dodd-Frank Act,” Howe reports.

In Seila Law, a 9th Circuit panel unanimously ruled the CFPB’s single director structure was constitutional, prompting Seila to file a brief asking the Supreme Court to hear the case to review that finding. This marks the first time since the CFPB’s inception that agency leadership and the DOJ will not defend the structure of the bureau in litigation.

The accounts receivable management industry has a huge stake in the case and will continue to monitor the legal challenge as it unfolds, in particular as ACA and in the industry continue to seek clarity from the CFPB regarding compliance with the Fair Debt Collection Practices Act. The CFPB has taken important steps to address the industry’s concerns by issuing a Notice of Proposed Rulemaking to update the FDCPA – which ACA commented on in a 154-page letter.

ACA also presents more analysis of the implications of the case on ACA Cast: Legal Review: Understanding the Challenge to the Constitutionality of CFPB’s Leadership Structure.

It’s worth noting that the ongoing questions surrounding the constitutionality of the bureau’s leadership structure are pertinent for all industries impacted by regulatory policies and enforcement decisions made by the CFPB. And at this point, it’s up in the air as to how the court will rule. Jessica Klander, shareholder at Bassford Remele, provides insights on the most important issues relevant to this case and the bigger picture related to the potential future of the CFPB.

Learn more about ACA’s advocacy efforts and strategy during a complimentary, members-only Hot Topic webinar Dec. 17. Speakers include CEO Mark Neeb, Jack Brown III, president Gulf Coast Collection Bureau Inc., Leah Dempsey, vice president, senior counsel, federal advocacy, and Andrew Madden, vice president, state unit and government affairs. Join ACA’s Advocacy Team for a recap of this year’s efforts and a discussion on the strategy for 2020, registration is open now.

Read more on the case in ACA’s coverage: SCOTUS to Hear Possible Game-Changing CFPB Case


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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