Collector - May 2017 - 50

IAP

ACA Files Brief in Pivotal Case
Challenging CFPB's Structure and Power
ACA has filed an amicus brief in the ongoing lawsuit between PHH and the
CFPB over whether the bureau's governance structure has exceeded its authority.
By Karen Scheibe Eliason

"The PHH Corp. case
represents the first
serious challenge to the
constitutionality of the
bureau's structure and
the first-ever challenge
to the CFPB's exercise
of its administrative
enforcement powers."
50

A

CA International filed a "friend
of the court" brief in March with
the U. S Court of Appeals for the
District of Columbia Circuit in the closely
watched appeals court case, PHH Corp.,
et al. v. Consumer Financial Protection
Bureau, No. 15-01177 (D.C. Cir., filed June
19, 2015).
The PHH Corp. case calls into question
the constitutionality of the CFPB's singledirector-removable-only-for-cause
leadership structure and authority. The full
slate of judges in the D.C. Circuit will take
a fresh look at the appellate court's prior
decision that found the agency's unusual
independence to be unconstitutional,
setting the stage for a legal fight that carries
significant implications for the future of the
agency in the Trump administration.
"The current structure of the CFPB, and
the questions surrounding its accountability
and oversight, have led to confusion in
the financial services industry, and we
continue to be concerned about problems
with regulatory excess that stifles growth
among our small businesses," said ACA
International CEO Pat Morris. "Given the
uncertainty and questions created by the
CFPB, we have today-as the voice for
the debt collection industry that has been
heavily regulated by the CFPB-submitted
an amicus brief to share with the court our
unique and direct perspective on why we
believe the bureau's powers must be reined
in within constitutional bounds to ensure
accountability and transparency."

A decision by the full panel of D.C. Circuit
Court judges in the case may not only clarify
the CFPB's reach in interpreting statutes and
doling out enforcement actions, but it may
also ultimately determine the very structure
of the bureau and the fate of its director.
In its amicus brief, ACA argues that
"[t]he Bureau's structure and function-
wielding power over a broad swath of
Americans' lives, concentrating power in the
hands of a single Director, insulated from
democratic accountability-is ripe for the
arbitrary and unrestrained exercise of power
in disregard for due process, and for the
constitutional rights of the objects upon whom
that power is exercised."
ACA contends that the CFPB's
"concentration of enormous executive
power in a single, unaccountable, unchecked
director" results in four key profound
unconstitutional consequences:
* The bureau's structure amounts to
an unconstitutional delegation of
legislative power to a single individual;
* The bureau's insulation from
presidential and congressional oversight
deprives its work of democratic
accountability;
* The bureau's unique funding
mechanism, in addition to being
insulated from accountability, also raises
an unusual conflict of interest; and
* The bureau's conduct in practice
has evaded traditional, transparent
mechanisms of administrative
procedure in favor of back-door

ACAINTERNATIONAL.ORG


http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - May 2017

Upfront
Industry News
Best Practices
FYI
Collection Tips
At Your Service
A Clean Slate
ACA International’s 2017 Convention and Exposition Feature
Calendar
Honor Roll
Spring Cleaning for Your Business
Sun Tzu and the Art of Collection Sales
We Have to Stop Meeting Like This
ACA Files Brief in Pivotal Case Challenging CFPB’s Structure and Power
Compliance
ACA SearchPoint
Last Word
Collector - May 2017 - Cover1
Collector - May 2017 - Cover2
Collector - May 2017 - 1
Collector - May 2017 - Upfront
Collector - May 2017 - 3
Collector - May 2017 - Industry News
Collector - May 2017 - 5
Collector - May 2017 - 6
Collector - May 2017 - 7
Collector - May 2017 - Best Practices
Collector - May 2017 - 9
Collector - May 2017 - FYI
Collector - May 2017 - 11
Collector - May 2017 - Collection Tips
Collector - May 2017 - 13
Collector - May 2017 - At Your Service
Collector - May 2017 - 15
Collector - May 2017 - 16
Collector - May 2017 - 17
Collector - May 2017 - 18
Collector - May 2017 - 19
Collector - May 2017 - 20
Collector - May 2017 - A Clean Slate
Collector - May 2017 - 22
Collector - May 2017 - 23
Collector - May 2017 - 24
Collector - May 2017 - 25
Collector - May 2017 - 26
Collector - May 2017 - 27
Collector - May 2017 - 28
Collector - May 2017 - 29
Collector - May 2017 - 30
Collector - May 2017 - 31
Collector - May 2017 - 32
Collector - May 2017 - 33
Collector - May 2017 - ACA International’s 2017 Convention and Exposition Feature
Collector - May 2017 - 35
Collector - May 2017 - Calendar
Collector - May 2017 - Honor Roll
Collector - May 2017 - Spring Cleaning for Your Business
Collector - May 2017 - 39
Collector - May 2017 - 40
Collector - May 2017 - 41
Collector - May 2017 - Sun Tzu and the Art of Collection Sales
Collector - May 2017 - 43
Collector - May 2017 - 44
Collector - May 2017 - 45
Collector - May 2017 - We Have to Stop Meeting Like This
Collector - May 2017 - 47
Collector - May 2017 - 48
Collector - May 2017 - 49
Collector - May 2017 - ACA Files Brief in Pivotal Case Challenging CFPB’s Structure and Power
Collector - May 2017 - 51
Collector - May 2017 - Compliance
Collector - May 2017 - 53
Collector - May 2017 - ACA SearchPoint
Collector - May 2017 - 55
Collector - May 2017 - Last Word
Collector - May 2017 - Cover3
Collector - May 2017 - Cover4
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