Congress created the Consumer Financial Protection Bureau (CFPB) in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and vested it with powers to enforce federal consumer financial laws. Under the Act, the CFPB is led by a single director, who is appointed by the president with the advice and consent of the Senate. The president may remove the director only for “inefficiency, neglect of duty, or malfeasance in office;” in other words, for cause. In 2017, the CFPB issued a demand for documents to Seila Law LLC as part of its investigation into the firm’s practices. Rather than complying, Seila Law challenged the CFPB’s authority to issue the demand. The firm argued that the CFPB director’s for-cause removal provision infringed on the president’s constitutional authority to direct and control the operations of the executive branch, because it prevents the president from removing the director at will.

Classroom Case Study>>

This classroom case study provides:

• background on the legal issues in the case;
• facts of the case;
• key legal definitions;
• argument summaries for the petitioner and respondent; and
• focus questions for fostering classroom discussion

The classroom case study was modified from PREVIEW of United States Supreme Court Cases. It can be used for teacher reference and provides a more detailed look at the case.