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Federal Judge Strikes Down CFPB Structure

The decision is throwing uncertainty into the agency's future.

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Consumer Financial Protection Bureau building in Washington, D.C. Photo by Diego M. Radzinschi

A federal judge in New York ruled Thursday that the makeup of the CFPB violates the constitution because it is governed by a single director who only can be removed by the president for cause.

The ruling conflicts with a January ruling by the District of Columbia Circuit Court of Appeals, which ruled that the agency’s structure of having one director, who may only be removed for cause, is not unconstitutional. That ruling came in a lawsuit filed by PHH, a mortgage company.

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David Baumann

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