Fifth Circuit Muddles CFPB's Plans to Use In-House Judges in Enforcement Proceedings

Webinar | June.01.2022

An appeals court decision earlier this month represents potentially the most significant incursion on regulators' authority to bring administrative enforcement proceedings since the creation of the modern administrative state. The timing of the Fifth Circuit's ruling is particularly sensitive for the Consumer Financial Protection Bureau, which recently signaled renewed interest in conducting exactly the type of enforcement proceedings that have now been called into question.

Orrick attorneys John Coleman, Amanda Lawrence, and Jeff Naimon discussed what the Fifth Circuit's decision could mean for providers of consumer financial services. They covered how the ruling could affect the CFPB's determinations on when to bring administrative proceedings, and how those proceedings typically differ from litigation in federal courts. The stakes are considerable, as the core features of administrative proceedings have long given rise to concerns about their fairness and constitutionality.