Being regulated by the CFPB gives the bank the right to challenge its very existence. Both challenges will be remanded back to a lower district court for consideration. While the CFPB was created by the Dodd-Frank Act to protect consumers from predatory lending involving the financial products distributed by banks, credit card companies, auto and payday lenders, many Republicans and others in the industry have objected to what they consider to be the regulatory overreach of the agency. Additionally, they are opposed to the single director, Richard Cordray, and the agency’s removal from Congressional oversight.
The court rejected a request by the bank to challenge the constitutionality of the Financial Stability Oversight Council, and in a separate ruling, rejected a group of state attorneys general request to challenge the constitutionality of Dodd-Frank’s orderly liquidation provisions. In both cases the court held neither held legal standing to challenge.
The bank’s CEO, Jim Purcell, said, “As a small community bank out in West Texas, we’ve always felt pretty vulnerable to the regulatory burdens imposed on us by Washington, D.C. In recent years, that threat was epitomized for us by the Consumer Financial Protection Bureau, an agency which was alarmingly free of traditional checks and balances.“
As MHProNews knows, July 21 marked the fifth-year anniversary of the passage of the Dodd-Frank Act, which has had a deleterious effect on the financing of manufactured homes, one that the CFPB is not willing to alleviate. ##
(Image credit:Steve Rhode/getoutofdebt.org)
