When the Dodd-Frank Act was negotiated, the CFPB’s structure was written so that the director of the agency could not be fired at will, but instead only for cause. Despite ample precedent for this at other agencies, in Seila Legislation LLC v. CFPB (2020), the Supreme Court ruled that this violated the separation of powers clause of the Constitution.
Ironically, this example of Republicans and the courts chipping away at the CFPB made it more effective under Biden. If the old rule were in place, Trump’s CFPB director Kathy Kraninger would have been able to serve out her five-year term until . Instead, Kraninger resigned before being fired on Biden’s Inauguration Day, and now modern Rohit Chopra serves as the director.
Additionally the payday lending rule, that is at the heart of the situation, hasn’t been moved by the new regimen, even though advocates wants to comprehend the function-to-repay standard restored
But opponents of the CFPB haven’t stopped. Another way Congress made an effort to insulate the new agency’s businesses has been this new very-named self-funding method. Read More
