Plaintiffs in BCFP Constitutionality Case File Petition for Consideration with U.S. Supreme Court

ACA International cited CEI’s Senior Fellow John Berlau on Constitutionality Lawsuit against CFPB. 

Three groups, including State National Bank of Big Spring, Texas, are asking the U.S. Supreme Court to consider a lawsuit challenging the constitutionality of the Bureau of Consumer Financial Protection’s leadership structure.

Following the outcome of PHH Corporation v. Consumer Financial Protection Bureau, State National Bank is joining plaintiffs Competitive Enterprise Institute (CEI), a nonprofit public policy organization, and 60 Plus Association, a seniors’ advocacy group, in filing a petition with the court to hear the case.


John Berlau, a senior fellow at CEI who was one of the original plaintiffs in the State National Bank case, said in a news release  that the organization supports President Donald Trump’s nominee Kathy Kraninger as the next BCFP director, but contests the bureau’s leadership structure.

“… We still believe that Kraninger—or any other sole director of the bureau—must operate within constitutional constraints,” Berlau said in the news release. “These include the ability to be checked by presidential removal and by the congressional appropriations process. Currently the bureau receives funding automatically from the Federal Reserve, depriving Congress of the opportunity to exercise meaningful oversight through the budget process. That is why we [are]…pressing on with this important lawsuit.”

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