CFPB motions for postponement pending U.S. Supreme Court’s consideration of a similar case.
11/12/2019 10:00
Proceedings in an appeals court case focused on the constitutionality of the Consumer Financial Protection Bureau’s leadership structure are on hold temporarily pending action in a similar case before the U.S. Supreme Court.
In CFPB v. RD Legal Funding LLC, Ballard Spahr LLP Of Counsel Barbara S. Mishkin reports the CFPB asked the Second Circuit to postpone the oral argument in the case until the Supreme Court issues a decision in the case Seila Law v. Consumer Financial Protection Bureau.
In Seila Law, a Ninth Circuit panel unanimously ruled the CFPB’s single director structure was constitutional, prompting Seila Law to file a brief asking the Supreme Court to hear the case to review that finding, ACA International previously reported.
RD Legal opposed the CFPB’s motion to hold the oral arguments in the Second Circuit case, “arguing that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act,” according to Mishkin.
The oral argument in the RD Legal case was set for Nov. 21, 2018, and the court’s order states it will be rescheduled.
Meanwhile, ACA is continuing to follow the Seila Law case. The Supreme Court’s review of the structure the CFPB is monumental. And, this marks the first time since the CFPB’s inception that agency leadership and the U.S. Department of Justice will not defend the structure of the bureau in litigation, ACA previously reported.
The issue of CFPB constitutionality is also slated for discussion on an upcoming episode of ACA Cast featuring an interview with Bassford Remele Shareholder Jessica Klander.
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