State AGs Defending CFPB to Ensure Consumer Protections against Abusive and Deceptive Practices

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A coalition of 24 State Attorneys General (AGs) filed an amicus brief in support of the Consumer Financial Protection Bureau (CFPB) in its case against a law firm challenging its structure.

Seila Law, a California-based law firm providing debt-relief service, refused to comply with the CFPB’s civil investigative demand. The bureau is seeking documents from the law firm to determine whether it violated consumer financial laws. Its refusal to comply prompted the bureau to file a petition asking the court to order the law firm to comply.

Seila Law is arguing that the structure of CFPB is unconstitutional

The law firm challenged the petition with an argument that the CFPB’s structure is unconstitutional citing the reason that the U.S. President may only remove the bureau’s director for inefficiency, neglect of duty or malfeasance in office.”

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Seila Law argued that the for-cause removal restriction provision impedes the Executive Branch and violates the separation of power clause of the U.S. Constitution.