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Constitutional Law Keyed to Chemerinsky
Seila Law LLC v. Consumer Financial Protection Bureau
Citation:
591 U.S. 197Facts
The Consumer Financial Protection Bureau was created as part of the Dodd-Frank Act in 2010 in response to the 2008 financial crisis. The CFPB was designed as an independent agency headed by a single Director who serves a five-year term and can be removed by the President only for “inefficiency, neglect of duty, or malfeasance in office.” The CFPB has extensive rulemaking, enforcement, and adjudicatory powers over a significant portion of the U.S. economy. In 2017, the CFPB issued a civil investigative demand to Seila Law LLC, seeking information about the firm’s business practices. Seila Law refused to comply, arguing that the CFPB’s structure violated the separation of powers because the Director exercised substantial executive power but was insulated from presidential removal.
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