Court: president Can Fire, head of the consumer agency
The United States Supreme Court struck down a key element of the Consumer Financial Protection Bureau (CFPB) which limited the presidential authority to fire the head of the agency. The office was one of the main regulatory reforms that followed the epic economic collapse of the Great Recession.
The decision in Selia Law v. Office of Consumer Financial Protection, had Chief Justice John Roberts voting with the rest of the court’s Tories. His written opinion said the restrictions on the president’s authority over an executive branch were unconstitutional.
The creation of the CFPB in 2010, by now US Senator Elizabeth Warren (D-Mass.), Was one of the great battles after the financial crisis. As with other reforms adopted in the wake of the economic disaster, the financial sector has since come under fire.
The election of Donald Trump in 2016 gave the industry a chance to attack the agency.
Between its inception and President Trump’s inauguration, the CFPB returned nearly $ 12 billion to defrauded consumers, according to the Huffington Post. This is because he was protecting consumers by enforcing rules on payday lenders, banks and others.
With the election of Trump, the fight for the agency was on.
In 2017, for example, the CFPB had drafted payday loan rules under the mandate of Richard Cordray, former director of the agency.
The Obama-era appointee sought to put in place new underwriting requirements for lenders, such as checking borrowers’ ability to repay payday loans. There was another element to the rules as well, which focused on how often a lender can attempt to debit payments from a customer’s bank account.
In 2019, a new person appointed by Trump as director of the CFBP sought to eliminate some of the rules, such as requiring lenders to verify a borrower’s income, debt, and spending habits to assess. his borrowing threshold before taking out his loan.