Another Petition Seeking Supreme Court Ruling on CFPB Constitutionality

Earlier this week, All American Check Cashing, a check cashing and payday lender, filed a petition to the U.S. Supreme Court asking for a ruling on the constitutionality of the Consumer Financial Protection Bureau (CFPB). In a surprising move, the company filed its petition before the Fifth Circuit Court of Appeals issued a ruling on the case.

The company filed a petition for writ of certiorari asking: (1) whether the structure of the CFPB violates the separation of powers and (2) whether a successful separation-of-powers challenger who is subject to an enforcement action by an unconstitutionally structured agency is entitled to meaningful relief, such as dismissal of the action, due to the agency’s constitutional defect. 

At the moment, there is another petition to the Supreme Court seeking clarification on the CFPB’s constitutionality called Seila Law v. CFPB. In that dispute, CFPB Director Kathy Kraninger recently got involved, urging the Supreme Court to review the case. In a letter to Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi, Director Kraninger stated, “I am writing to advise you that the [CFPB] has determined that the for-cause removal provision of [Dodd-Frank] is unconstitutional.”

These two petitions and Director Kraninger’s comments have made it much more likely that the Supreme Court will rule on the constitutionality of the CFPB during its upcoming term.