New Supreme Court Ruling Could Result In Challenges Within CFPB
On Monday, The Supreme Court ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional.

On Monday, The Supreme Court ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional.
Image by Mark Thomas from Pixabay
On Monday, The Supreme Court ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional. This may result in a wave of new legal challenges to regulations and enforcement actions previously enforced by the organization.
The agency may therefore continue to operate, but its Director, in light of our decision, must be removable by the President at will.
In a 5-4 decision, the court ruled that the director of the CFPB must be fireable at will by the president in an attempt to prevent the agency from infringing on the separation of powers between legislative and executive branches.
Although the decision does not dismantle the financial regulator, it does answer some questions that had followed the Obama-era bureau. All those who followed the progress largely agreed that the decision would do little to curb the CFPB’s immense power, on both the conservative and progressive sides.
In 2010, the Dodd-Frank Act created the CFPB as an agency to be controlled by a single director who held unilateral control over the regulatory and enforcement decisions. This director would serve a five-year term and, until Monday, could only be fired for severe neglect or misconduct.
Joined by his conservative colleagues, Chief Justice John Roberts wrote in the majority decision, "The agency may therefore continue to operate, but its Director, in light of our decision, must be removable by the President at will."
Originally posted on F&I and Showroom
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →