Group Backs CFPB Push for Panel Ruling in Politically Motivated Case Cheered by Wall Street
CFPB Seeks to Uphold Historic Consumer Protections, Reverse Ruling of D.C. Circuit Court of Appeals by Republican-Appointed Three-Judge Panel
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) filed a petition to defend its authority to protect American consumers and hold powerful Wall Street interests accountable. This petition, filed en banc, challenges a 2-1 ruling in the U.S. Court of Appeals for the D.C. Circuit from October that challenged the constitutionality of the CFPB’s structure.
If the CFPB’s petition for a panel ruling is granted, the initial judgment of the three-judge panel will be immediately vacated and have no legal effect. The filing is the first step in overturning the Court’s politically motivated decision, which was cheered on by Wall Street special interests that have sought to stop the CFPB from holding them accountable for their reckless behavior.
“This is an important first step in the fight to overturn the Court’s reckless, politically motivated decision that was designed to cripple the CFPB, an incredibly important consumer watchdog that has returned $11.7 billion to more than 27 million Americans harmed by the actions of credit card companies, big banks, debt collectors, payday and other predatory lenders in just the past five years. It’s no wonder Wall Street wants to kill this successful agency – their ability to rip off consumers has been greatly diminished,” said Karl Frisch, executive director of Allied Progress.
He continued, “The plaintiffs in this case have been cheered on from the legal sidelines by the very same Wall Street special interests that instigated and profited from the financial crisis of 2007 and 2008, while millions of Americans were losing their homes and their retirement savings. The Consumer Financial Protection Bureau (CFPB) was created to hold these powerful financial institutions accountable – to make sure we never experience such a crisis ever again.”
In this case, CFPB Director Richard Cordray ordered the mortgage service company PHH Corporation to pay $109 million in restitution for illegal kickbacks it gave to mortgage insurers. The move caused unassuming homeowners to pay additional, unnecessary expenses for home insurance.
If the full D.C. Circuit agrees to hear the case, the judgment of the three-judge panel is immediately vacated and has no legal effect. As a result, the CFPB would continue to be structured as Congress intended and the CFPB Director would not be removable at will by the President.
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To speak with Allied Progress about this release, please contact Lia Weintraub at 860-803-4812 or lia@thepastorumgroup.com.
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