In a sharp rebuke of its authority and decision-making, the D.C. Circuit Court of Appeals has ruled that the Consumer Financial Protection Bureau is unconstitutionally structured and must be changed to continue operations.
The court ruled that CFPB Director Richard Cordray enjoyed more unilateral authority “than any other officer in any of the three branches of the U.S. government, other than the president.” The bureau will be allowed to continue operations, but the court worked to change its structure to allowed it do so.
“The bureau respectfully disagrees with the court’s decision,” a CFPB spokesperson said.
Read on for details of the decision, along with more CFPB and industry reaction.