CFPB’s single-director leadership is effective, argue supporters

Among those who filed amicus briefs in favor of the CFP were Dodd-Frank authors Chris Dodd and Barney Frank

CFPB’s single-director leadership is effective, argue supporters

The legal battle between PHH and the Consumer Financial Protection Bureau lingers on, as support on both sides continue to pour in.

Consumer and civil-rights groups, legal scholars and former and current members of the Congress submitted amicus briefs Monday to show their support for the bureau, according to the Center for Responsible Lending (CRL).

Chris Dodd and Barney Frank, authors of the Dodd-Frank Act, which gave birth to the CFPB, were also part of the amici, said the CFPB Monitor.

Past and present members of the Congress insisted upon the constitutionality of the bureau and the importance of having a sole director “to avoid the delay and gridlock to which multi-member agencies are susceptible.”

"Since its establishment, the CFPB has proven to be highly effective in responding to unlawful, abusive practices within the financial services industry,” said CRL President Mike Calhoun. “Its ability to make consumer protection a top priority is due to its leadership structure by a single director who is insulated from undue special interests. Any attempt to weaken the CFPB by disrupting its leadership presents a real threat to consumers across the country. It will revert us back to lax financial regulations and cause another painful economic crisis that we simply cannot afford.”

PHH, however, insisted that the bureau is “unconstitutionally structured” since the director of the agency can only be removed for cause. Last month, seven amicus briefs were filed in support of PHH.

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