U.S. Supreme Court to Review Constitutionality of CFPB Structure: What Does It Mean?

On Friday, the U.S. Supreme Court agreed to hear a case that questions whether the Consumer Financial Protection Bureau’s (CFPB) structure is constitutional. In Seila v. CFPB, the nation’s highest court will specifically review whether the single-director structure and the President's removal authority of the director violate the separation of powers. Just like a double rainbow, everyone is asking what it means. 

A little background

The case stems from the CFPB’s investigation of Seila Law LLC, a debt resolution law firm. Seila Law objected to the CFPB’s civil investigation demand (CID) for information and documents about the firm, arguing that the CFPB was unconstitutionally structured. The CFPB petitioned a federal court for enforcement of the CID. The court found no issue with the CFPB’s structure. Seila Law appealed the matter to the Ninth Circuit, which affirmed the district court's decision. Seila Law is now seeking the Supreme Court’s decision on the matter, arguing that “This case, which cleanly presents the question whether the CFPB is constitutional, is an ideal vehicle for the Court’s review.”

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