Congressman Frank Lucas applauded the U.S. Court of Appeals for the D.C. Circuit finding that the current structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional. It is a case of too much authority with no checks and balances according to the three-judge panel’s opinion.
“The [CFPB] director enjoys more unilateral authority than any other officer in any of the three branches of U.S. government,” wrote the judges.
The CFPB was born out of the financial crisis which saw lending on Wall Street grind to a halt during the housing bubble starting in 2007. The bureau was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 as a reaction to the crisis. It has jurisdiction over banks, credit unions and various financial companies.
“I applaud the court’s decision today to recognize the CFPB’s complete lack of accountability,” said Lucas. “It’s remarkable that a government bureaucracy can spend millions of tax payer dollars and operate with zero Congressional or executive branch oversight.”
The oversight could come from Congress according to Lucas.
“Today’s ruling highlights the need for a bipartisan five-member commission to oversee the CFPB. The agency cannot reliably carry out its intended purpose unless proper checks and balance are put in place.”
