Communicate . Collect . Comply & Community


CFPB Ruled Unconstitutional

October 31, 2016

A federal appeals court recently found that the Consumer Financial Protection Bureau is unconstitutionally structured. This is a case collection agencies and many other businesses have been watching because it has the potential to impact how we collect on non-payments.

The U.S. Court of Appeals for the District of Columbia Circuit held that the CFPB’s leadership structure is unconstitutional. The CFPB is an independent agency with a single director who can only be removed “for cause” by the President. While the bureau will continue to operate, the court removed the “for cause” provision, meaning the President can now appoint a director at will.

Also important, the decision indicates statutes of limitations for CFPB administrative actions: “the Dodd-Frank Act incorporates the statutes of limitations in the underlying statutes enforced by the CFPB in administrative proceedings.”

The Association of Credit and Collection Professionals (ACA) explains the history and details of this decision.

What This Means For Collections
While we want to ensure that people who struggle to pay their debts are treated fairly, it’s important that the organization in charge of this miss
ive is transparent. The ACA seeks to increase the accountability at the CFPB, and Professional Recovery Consultants supports that goal.

PRC wishes to stress to all our clients, that compliance has and always will be paramount to our operation and your collections. We proactively search out changes in regulation and our Full-time Compliance Officer ensures that we are on the cuff of any updated rulings or impending changes. If you have any questions about this change or any other, please feel free to reach out to PRC at 800-868-7724 or sales [at]

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