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SCOTUS Holds CFPB Structure Violates Separation of Powers

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The Supreme Court today ruled in Selia Law v. CFPB that the structure of the CFPB violates the separation of powers. In an opinion written by Chief Justice John Roberts, the Court held that, “the CFPB Director’s removal protection is severable from the other statutory provisions bearing on the CFPB’s authority.”

The ruling goes on to note, “The agency may therefore continue to operate, but its Director, in light of our decision, must be removable by the President at will.” The Court’s decision means – barring Congressional action to make additional statutory changes – that the Director of the CFPB serves at the pleasure of the President in a similar way to Cabinet-level appointees.

Earlier this month, AFSA, along with other trade associations, submitted a letter to Sen. Deb Fischer (R-NE) supporting her bill that would transform the CFPB’s leadership structure. This isn’t a new issue for AFSA, however. The association has long sought a commission structure, similar to other federal regulatory bodies, to bring fair and consistent oversight of the financial services industry. AFSA pressed for a five-member, bipartisan commission structure at the Bureau long before its actual founding. During the debate over the Dodd-Frank Wall Street Reform Act, AFSA, many other trade associations and members of Congress from both sides of the aisle recommended a commission structure.

AFSA is pleased that the Court recognized the immense power wielded by the CFPB Director. We continue to believe that the Bureau should be constructed as other regulatory commissions in Washington are. The association will continue to advocate for that structure, which would provide necessary consistency to the Bureau.

SCOTUS Holds CFPB Structure Violates Separation of Powers
Jun 29, 2020

The Supreme Court today ruled in Selia Law v. CFPB that the structure of the CFPB violates the separation of powers. In an opinion written by Chief Justice John Roberts, the Court held that, “the CFPB Director’s removal protection… Read the rest

Trending Payment Data & Insights During COVID-19 on the Extra Credit Podcast
Jun 25, 2020

In this episode of the AFSA Extra Credit Podcast we talk with Mike Kaplan, CRO with PayNearMe. In mid-May, PNM unveiled a study entitled Consumer Bill Pay Trends During COVID-19. PayNearMe analyzed hundreds of thousands of bill payments madeRead the rest

Identity and Income Fraud in an Increasingly Digitized World
Jun 24, 2020

Join us on June 30 at 1:00 p.m. ET for Identity and Income Fraud in an Increasingly Digitized World, presented by AFSA.

With most dealers going digital and offering off-lot deliveries, it is more important than ever to ensure a consumer’s… Read the rest

CFPB Issues Two NPRMs on Mortgage
Jun 24, 2020

The Consumer Financial Protection Bureau (CFPB) has issued two notices of proposed rulemaking (NPRMs) to amend the Ability to Repay/Qualified Mortgage (ATR-QM) Rule. The first NPRM would extend the sunset date for a temporary category … Read the rest

AFSA Submits Letter to FTC on Endorsement Guides
Jun 23, 2020

This week, AFSA submitted a comment letter to the Federal Trade Commission (FTC) in response to the agency’s request for comment regarding its guidance on advertising, referred to as the Endorsement Guides.

AFSA addressed the need… Read the rest

Class Action Threats Facing the Consumer Finance Industry in the Age of COVID
Jun 22, 2020

Join us on June 25 at 2:00 p.m. ET for Class Action Threats Facing the Consumer Finance Industry in the Age of COVID.

Please join California-based class action defense litigators Anna McLean, Jay Ramsey, Alex Moreno, and Abby Meyer of Sheppard… Read the rest

AFSA Supports Commission Format for CFPB
Jun 19, 2020

The American Financial Services Association (AFSA) yesterday (June 18) joined several other trade associations that represent a wide swath of the American economy in a letter to Sen. Deb Fischer (R-NE) supporting her bill (S. 3990) that … Read the rest

AFSA Statement on CA Assembly Adjournment Without Reconsideration AB 2501
Jun 18, 2020

Today the California Assembly adjourned without reconsidering the “COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020,” (AB 2501), which if approved would have required creditors to provide up to nine months of vehicle… Read the rest

CFPB Launches Pilot Advisory Opinion Program
Jun 18, 2020

The Consumer Financial Protection Bureau (CFPB) today launched a pilot advisory opinion (AO) program to publicly address regulatory uncertainty in the Bureau’s existing regulations. In a July 2018 letter to the CFPB on guidance,… Read the rest

Auto Lending Economic Outlook & Optimization/Risk Mitigation Strategies for the Way Forward
Jun 17, 2020

Cox Automotive Chief Economist Jonathan Smoke returns on June 18 at 2:00 p.m. ET to keep lenders apprised of market conditions and financial predictions – particularly with off-lease inventory expected to surge and used retail to … Read the rest

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