Consumer Finance Monitor A Deep Dive into the Fight for the CFPB’s Survival
We recently wrote about the August 15th D.C. Circuit Court of Appeals decision in the lawsuit brought by the labor unions representing CFPB employees against Acting Director Russell Vought. The unions sought injunctive relief in response to what they described as an attempted “shutdown” of the Bureau.
In a 2–1 ruling, the Court of Appeals vacated a preliminary injunction issued by the District Court. That injunction had temporarily blocked the CFPB from carrying out a reduction-in-force (“RIF”) that would have left the Bureau with only about 200 employees to carry out its statutory responsibilities.
Today, our Consumer Finance Monitor podcast takes a deep dive into this critical decision and its implications. Alan Kaplinsky (founder and former practice group leader, now Senior Counsel in our Consumer Financial Services Group) joins Joseph Schuster (a partner in the Group) for a wide-ranging conversation covering:
- The majority opinion by Judge Katsos
- The dissenting opinion by Judge Pillard
- The plaintiffs’ options for further review — and why the odds may be at least 50–50 that the full D.C. Circuit (with 11 judges, 7 appointed by Democratic presidents) will grant en banc review
- Why plaintiffs might choose to continue litigating in the District Court as the CFPB implements the RIF and scales back activities to only those that are statutorily mandated
- How the CFPB’s sharply reduced budget (cut nearly in half by the “Big Beautiful Bill”) shapes the Bureau’s future functions
- What the CFPB could look like once litigation ends and “the dust settles”
- The impact of the just-released semiannual regulatory agenda
- The current status of the complaint portal
- What’s happening with the CFPB’s supervision and enforcement efforts
- How the DOJ and FTC are approaching consumer financial services issues
- Whether state attorneys general are stepping up enforcement to fill the gap left by a diminished CFPB
This is a must-listen episode for anyone following the future of the CFPB, the role of other federal agencies, and the actions of state AGs in regulating consumer financial services.