Saying she wanted to provide the public with “certainty” about Consumer Financial Protection Bureau actions following a recent U.S. Supreme Court decision, Director Kathleen Kraninger last week ratified virtually all agency rules and policies.
“The Bureau is taking action to ensure that consumers and market participants understand that the same rules continue to govern the consumer financial marketplace,” Kraninger said.
Agency officials said the ratification was done “out of an abundance of caution,” following the recent Supreme Court decision that found the agency’s structure unconstitutional. The court said that the single-director structure was unconstitutional because the director could only be removed for cause. Now, the director may be removed by the president for any reason.
When it issued the decision, the justices said that they were not voiding any agency decisions during the time the bureau operated using the unconstitutional structure.
Kraninger said the ratification does not include an arbitration rule that Congress repealed using the Congressional Review Act or the original payday lending rule that recently was amended by the agency.
Agency officials said they are examining whether other agency decisions, such as pending enforcement actions, should be ratified as well.