House engages in heated debate about constitutionality of the CFPB

House debates CFPB constitutionality

On March 21, 2017, the House Financial Services Committee’s Subcommittee on Oversight and Investigations conducted a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” The hearing featured four witnesses: Ted Olson, Saikrishna Prakash, Adam White, and Brianne Gorod. The hearing is archived and can be viewed here.

Rather than allowing the witnesses to offer their expertise on the CFPB’s constitutionality and design, House Republicans and Democrats on the subcommittee used the hearing as a platform to express their opinions of the virtues of the CFPB’s mission and accomplishments rather than evaluating and critiquing the agency’s constitutionality.


DOJ brief argues that Trump can fire CFPB Director

can Trump fire CFPB DirectorEarlier this month, the DOJ filed an unopposed motion for leave to file an amicus brief which indicated that the Trump Administration might be switching sides in the legal battle, departing from the position that the DOJ took under President Obama. So it came as no surprise when the DOJ submitted its amicus brief in the PHH case last Friday and asked the DC Circuit to declare the CFPB’s leadership structure unconstitutional.


House subcommittee to hold hearing on CFPB’s constitutionality

House subcommittee hearing CFPBOn March 21, 2017, the Subcommittee on Oversight and Investigations of the House Committee on Financial Services will hold a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” Based on the title of the hearing, isn’t hard to guess where the committee stands on the issue of the CFPB’s authority and constitutionality.

According to the memorandum from the Committee’s Majority Staff to Committee Members, the hearing “will examine whether the structure of the Bureau of Consumer Financial Protection (“Bureau”) violates the Constitution as well as structural changes to the Bureau to resolve any constitutional infirmities.”


FTC orders telemarketing scheme operators to pay $7.5 million in consumer redress

FTC telemarketing scheme settlement On March 13, 2017, the FTC issued a press release announcing that it reached a settlement with the operators of a telemarketing scheme that had allegedly harmed thousands of consumers across the country. According to the FTC, many of the consumers targeted by the scheme were elderly individuals or military veterans living on fixed income.

Under the terms of the stipulated final order, the defendants must pay approximately $7.5 million in consumer redress. The defendants are also prohibited from telemarketing, marketing investment opportunities, and selling or otherwise benefiting from consumers’ personal information.


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