10.12.16

Senator David Perdue: Court Rules CFPB Current Structure Unconstitutional

“We’ve seen this agency use its unconstitutional power structure to collect Americans’ financial information”

WASHINGTON, D.C – U.S. Senator David Perdue (R-GA) today released the following statement after a three-judge panel on the D.C. Circuit Court of Appeals ruled that the Consumer Financial Protection Bureau (CFPB) is unconstitutionally structured and recommended giving additional power to the president: 

“The D.C. Circuit Court of Appeals agrees the CFPB’s current structure is unconstitutional and the agency is ripe for abuse. President Obama created this rogue agency under the guise of ensuring the financial security of hard-working Americans. Since that time, we’ve seen this agency use its unconstitutional power structure to collect Americans’ financial information. 

“Since coming to the United States Senate, I’ve fought to shine light on the CFPB. It's unfortunate that our courts had to remind Congressional Democrats what Americans have always known: a separation of powers and checks and balances are what the people expect. However, simply handing the president more power over this agency, as the court demanded, does not solve the problem. The CFPB should be subject to Congressional oversight. If the CFPB wants to continue to impose rules and regulations that impact every American’s financial well-being, it must answer to the American people.”

Currently, the CFPB operates under the Federal Reserve and is permitted by the Dodd-Frank Act to draw up to 12 percent of the Fed’s annual operating budget. Given the expansive reach of the CFPB, Senator Perdue introduced the Consumer Financial Protection Bureau Accountability Act of 2015 to bring the agency under the Congressional appropriations process. 

Similar legislation is sponsored by U.S. Representative Sean Duffy (R-WI-07) and recently passed the House Financial Services Committee. Additionally, Senator Perdue amended the 2015 Budget Resolution to include CFPB oversight measures outlined in the Consumer Financial Protection Bureau Accountability Act.