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Old 10-12-2016, 10:30 AM   #1
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Default AM Roundup: Bad News for the CFPB

Law Blog rounds up the morning's legal news:

A rebuke in D.C.: A federal appeals court delivered a strong rebuke to the government’s new consumer-finance watchdog, declaring the agency’s unusual independence to be unconstitutional, and ordering its powers be curbed. [WSJ] A difficult case: The Supreme Court on Tuesday appeared frustrated over how to resolve a […]

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Old 10-12-2016, 12:23 PM   #2
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Default Re: AM Roundup: Bad News for the CFPB

Is this the end of the CFPB? .....

Consumer Financial Protection Bureau’s (CFTB) critics want to shut the agency down and claim its structure is ‘unconstitutional’ and ‘unaccountable to the public’

“The independent agencies collectively constitute, in effect, a headless fourth branch of the U.S. Government,” writes Judge Brett Kavanaugh. “They exercise enormous power over the economic and social life of the United States. Because of their massive power and the absence of Presidential supervision and direction, independent agencies pose a significant threat to individual liberty and to the constitutional system of separation of powers and checks and balances.”

“Unconstitutionally Structured”

While there is no law explicitly stating that independent agencies must be headed by commissioners or boards, the court’s majority concluded that there was no precedent for vesting this level of authority in a single director.

“In light of the consistent historical practice under which independent agencies have been headed by multiple commissioners or board members, and in light of the threat to individual liberty posed by a single-Director independent agency,” concluded Kavanaugh. “We therefore hold that the CFPB is unconstitutionally structured.”

If you believe Republicans, the CFPB – part of the Dodd-Frank reforms that followed the financial crisis of 2008 – is, in the words of Kavanaugh, a “grave threat to individual liberty”, a phrase he used once every three pages or so in his 98-page decision.

Investor’s Business Daily agrees. The CFPB is an “out-of-control” and “dangerous” entity, it wrote – “the Frankenstein’s Monster of federal regulatory agencies” that is “almost entirely unaccountable to the public”.


Source:

1) https://consumerist.com/2016/10/11/a...age-kickbacks/

2) https://www.theguardian.com/business...ngress-critics
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Old 10-17-2016, 10:15 AM   #3
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Default Re: AM Roundup: Bad News for the CFPB

Last week the United States Court of Appeals for the District of Columbia reversed the 2014 CFPB victory against PHH Mortgage over reinsurance kickbacks. The punitive $109,000,000 fine levied by Director Richard Cordray was vacated.

Back in February of 1990, then heavyweight champion Mike Tyson fought underdog journeyman Buster Douglas in Japan. Iron Mike got knocked out and lost his title to Buster that night. CFPB Director Cordray and Iron Mike both made the same mistakes; they picked the wrong fight and they underestimated how hard their opponent could hit back.

http://www.forbes.com/sites/markgree.../#2007da413dd5


.... and for Donald Trump, the real dirty word is 'CFPB'...

Leaving aside other things that might be snatched away if the Raging Pumpkin of Doom becomes the country's groper-in-chief, let's turn our attention to the Consumer Finance Protection Bureau. The CFPB is the cop on the personal finance beat that just busted Wells Fargo for bilking customers holding nearly 1 million accounts out of at least $2.5 million.

The CFPB was founded and now fairy godmothered by Sen. Warren and would be wiped out under Trump's stated plan to repeal the Dodd-Frank financial overhaul rules passed by Congress...


Source:

http://www.chicagotribune.com/busine...017-story.html
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Old 10-26-2016, 10:46 AM   #4
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Default Re: AM Roundup: Bad News for the CFPB

LITTLE ROCK, Ark. (Legal Newsline) — Arkansas Attorney General Leslie Rutledge recently urged the Consumer Financial Protection Bureau (CFPB) to withdraw its arbitration rule that attempts to limit companies from including mandatory arbitration clauses in consumer financial agreements.

Along with a coalition of attorneys general, Rutledge participated in a comment letter to the CFPB that claims arbitration benefits consumers while not costing much to the companies.

“The CFPB wants to insert itself into an area of the marketplace that has allowed consumers and companies to settle disputes at lower costs and at a faster pace,” Rutledge said.

“As the chief consumer advocate for Arkansans, I do not want the government implementing a policy that will force citizens into more class action lawsuits and pad the wallets of trial lawyers. Moreover, the CFPB is pushing this rule after its own study concluded it was not necessary. I will continue to monitor this rule, and I urge the CFPB to withdraw it.”

Rutledge joined West Virginia Attorney General Patrick Morrisey, who is leading the initiative, in the letter along with attorneys general from Michigan, Nevada, Oklahoma, South Carolina and Texas.
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Old 12-24-2016, 03:27 PM   #5
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Default Re: AM Roundup: Bad News for the CFPB

This is a devastating article:

The Tragic Downfall of the Consumer Financial Protection Bureau
December 21, 2016 Ronald Rubin

On October 11, 2016, in PHH Corp. v. Consumer Financial Protection Bureau, a three-judge panel of the D.C. Circuit Court of Appeals found the CFPB’s structure unconstitutional and “fixed” it by empowering the president to remove the agency’s director at will. Sounds dull, but this is a tragic story.

— Ronald L. Rubin was an enforcement attorney at the Consumer Financial Protection Bureau and the chief advisor on regulatory policy at the House Financial Services Committee.

Read more at: http://www.nationalreview.com/articl...ragic-failures


UPDATES:

Former CFPB attorney pretty much just confirmed the worst fears of the mortgage industry
January 3, 2017 Jacob Gaffney

http://www.housingwire.com/blogs/1-r...tgage-industry

Quote:
So it’s not the starting point that’s the problem, it is the CFPB as a means to an end. And if that continues to operate outside additional checks and balances, then the due process of the law will continue to be pushed aside to achieve the wrong kind of vision under a masquerade of consumer protection.

Supreme Court Weighs Petition To Rein In Obama’s Most Powerful Agency
January 3, 2017 Kevin Daley

http://dailycaller.com/2017/01/03/su...werful-agency/

Quote:
A petition filed before the end of the year asks the justices to strike down a wide range of actions taken by CFPB before its director was officially installed. Federal law requires all agency actions be approved and carried out by an agency’s executive officer, the individual to whom Congress makes an explicit grant of power.

The case was occasioned when CFPB levied a number of fines and penalties against Chance Gordon, a California lawyer accused of violating several provisions in the Consumer Financial Protection Act. The agency ultimately assessed an $11 million fine against Gordon and his law practice for charging fees for legal services he allegedly did not provide.
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Old 02-02-2017, 10:57 AM   #6
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Default Re: AM Roundup: Bad News for the CFPB

It’s time to reform the CFPB !!



Richard Cordray - Director of the Consumer Financial Protection Bureau - © Getty

Quote:
Cordray’s lack of accountability, along with his outsized influence over the Bureau’s decision making processes, is exemplified in the PHH Corp. vs. CFPB case. Following a 2014 ruling against mortgage lender PHH Corp. that resulted in a multi-million dollar fine, Cordray unilaterally negated the judge’s decision and decreed that the company instead owed more than $100 million more in fines than the judge ordered. PHH challenged Cordray’s move in the United States Court of Appeals for the District of Columbia and, in October 2016, the Court ruled against the CFPB, vacating Cordray’s additional fine, declaring the Bureau’s leadership structure unconstitutional, and limiting the authority of the director.
http://thehill.com/blogs/congress-bl...eform-the-cfpb
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Old 03-13-2017, 08:42 PM   #7
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Default Re: AM Roundup: Bad News for the CFPB

UPDATE: http://www.cutimes.com (2017/03/13)

CFPB Makeup Is Unconstitutional, Republican AGs Argue

Fourteen Republican state attorneys general have filed a brief in federal court in support of a mortgage firm challenging the constitutionality of the structure of the CFPB. In addition, 13 trade associations representing financial services organizations, including CUNA and NAFCU, filed briefs in the case, but those groups addressed a much narrower argument rather than the constitutionality of the CFPB.

“The Consumer Financial Protection Bureau’s novel governance structure violates the separation of powers in ways that directly threaten critical federalism interests,” the attorneys general said.

In addition to the 14 GOP attorneys general, Georgia’s attorney general’s office, which is non-partisan, joined in the following.
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Old 03-14-2017, 07:45 PM   #8
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Default Re: AM Roundup: Bad News for the CFPB

The CFPB is clearly unconstitutional and must be eliminated. When 14 attorneys general find any institution unconstitutional there is not much argument.
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