Mexican Media Brands
U.S. Justice Dept. Challenges Consumer Lending Watchdog Agency
A federal agency set up after the banking crisis to monitor auto loan companies and other lenders in the U.S. has been challenged as unconstitutional by the U.S.
#regulations
Share
A federal agency set up after the banking crisis to monitor auto loan companies and other lenders in the U.S. has been challenged as unconstitutional by the U.S. Dept. of Justice, Reuters reports.
The Consumer Financial Protection Bureau was set up in 2010 within the Justice Dept. to help protect consumers against fraud in lending. Thus the Justice Dept. under the Trump administration is challenging the legality of one of its own departments.
Critics says CFPB’s single-director structure gives its chief—an appointee of the Barack Obama administration—too much power. Under the law, the president can remove the bureau’s director only for cause. The current director's term expires next year.
The constitutionality of the bureau is being challenged by mortgage company PHH Corp. The Justice Dept.’s brief in support asserts that CFPB’s structure increases the risk of the bureau “taking actions or adopting policies inconsistent with the president’s executive policy.”
RELATED CONTENT
-
Daimler Cleared to Test Advanced Robotic Cars on Beijing Roads
Daimler AG has become the first foreign carmaker to win permission to test advanced self-driving vehicles on public roads in Beijing.
-
Carmakers Ask 10 States to Help Bolster EV Sales
Carmakers are asking for more support for electric cars from states that support California’s zero-emission-vehicle goals, Automotive News reports.
-
U.S. in No Hurry to Regulate Autonomous Vehicles
The National Highway Traffic Safety Administration says the emerging technology involved in self-driving cars is too new to be tightly regulated.