Lawsuit challenging CFPB's constitutionality can go forward, says appeals court

by Ryan Smith27 Jul 2015
The Consumer Financial Protection Bureau shouldn’t even exist, according to a lawsuit challenging the agency’s constitutionality.

The U.S. Court of Appeals ruled Friday that a lawsuit challenging the CFPB’s constitutionality could move forward, according to a Wall Street Journal report. The decision reverses a trial judge’s 2013 ruling throwing out the lawsuit.

The lawsuit, filed by the State National Bank of Big Spring, a small bank in West Texas, contends that the CFPB’s formation and operation under the Dodd-Frank Act may unconstitutionally violate the separation of government powers, since the agency has broad authority virtually unchecked by other agencies.

The appeals court recommended that a trial court consider the issues of constitutionality raised in the suit, the Journal reported.

Among the plaintiffs joining the bank in its suit is the libertarian Competitive Enterprise Institute, which has unsuccessfully challenged Obamacare in recent years.


  • by Taxpayer | 7/27/2015 9:40:39 AM

    The CFPB has done nothing more than increase the cost and reduce access to credit for the consumer. Shut them down!

  • by mm | 7/27/2015 10:05:00 AM

    I concur. I dont know who they think they are helping. Their lack of knowledge of the interaction between borrower and mortgage officer and the entire home purchase transaction has created a massive load of red tape. They slow down free enterprise in the United States.

  • by Offended | 7/27/2015 10:16:26 AM

    Additionally the CFPB has an open check book to the treasury, which eliminates any check and balance by Congress and the power of the purse. If they want 300 million for operational expense - it's no problem - just open the vault and take whatever you want. That is definitely unconstitutional


Should CFPB have more supervision over credit agencies?