Historic Court Ruling Limiting Power of CFPB

On October 11, 2016, the court made a historic ruling in PHH Corporation v. Consumer Financial Protection Bureau, striking down as unconstitutional the current structure of the Consumer Financial Protection Bureau (CFPB). Bureau director Richard Cordray will no longer have sole authority over the CFPB. Instead, the Court granted the president the power “to remove the director at will, and to supervise and direct the director.”

The first paragraph of the Court’s opinion sums up the Court’s rationale for its decision: “This is a case about executive power and individual liberty. The U.S. Government’s executive power to enforce federal law against private citizens…is essential to societal order and progress, but simultaneously a grave threat to individual liberty.”