CFPB Survives Legal Attack as Court Trims Director’s Power
- Panel also rejects $109 million fine imposed on mortgage firm
- Ruling returns kickback case to still-intact Dodd-Frank agency
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The Consumer Financial Protection Bureau survived a constitutional challenge and will remain in business, though a federal appeals court took away power from its director and tossed out a $109 million penalty against a mortgage company.
The long-awaited decision was a blow to the agency, which was created in the wake of the financial crisis to regulate mortgages, credit cards and other products directed at consumers. Ever since, it’s been the subject of almost constant criticism from Republicans and the industry, most recently when it scored its highest-profile victory to date, penalizing Wells Fargo & Co. for opening accounts without clients’ knowledge.