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CFPB Wins Full DC Circuit Review of Leadership Ruling

Tue 21 Feb, 2017  /  by McIntyre & Lemon  /   Client Alerts

02/21/17 – Law360 reports that the D.C. Circuit has granted a request from the Consumer Financial Protection Bureau for a full-panel rehearing of an October decision that ruled the Bureau’s structure unconstitutional.

A split three-judge panel found in October that the CFPB’s single-director leadership structure was unconstitutional, and rectified this by transforming the independent agency into an executive agency where the president could fire the CFPB’s director at will. The 2010 Dodd-Frank Act, which created the CFPB, only allowed for the president to fire the bureau’s director for cause. The appellate court’s grant of an en banc review also vacated that ruling the panel’s ruling, standard procedure for the D.C. Circuit.

The D.C. Circuit advised the CFPB to file its brief on March 10 and gave PHH until March 31 to respond. Oral arguments will be heard May 24.

Law360 (sub. req.); En Banc Review Order.