District Court hears arguments on preliminary injunction request

Judge Timothy Kelly heard arguments on Friday, Dec. 22 for a preliminary injunction request from Leandra English challenging President Trump’s appointment of Mick Mulvaney to serve as interim director of the Consumer Financial Protection Bureau (CFPB). CUNA is participating as an amici in this litigation.

During the hearing, the Department of Justice (DoJ) argued that the Federal Vacancies Reform Act (FVRA), which explicitly to vacancies and resignations is the traditional statutory authority for addressing Executive Branch vacancies, and contains limited exceptions expressly articulated in the statute itself (none of which apply to the CFPB). It also argued that Section 5491 of the Dodd-Frank Act does not clearly apply to a vacancy and does not include a clear statement displacing the FVRA’s preexisting procedures. During the hearing in addition to counsel for DoJ, the CFPB’s General Counsel sat on the Defendants side. Previously, the CFPB general counsel issued a memo siding with the DoJ.

Plaintiff’s counsel, Deepak Guptam argued that the Dodd-Frank Act provides a mandatory succession plan for CFPB leadership that should displace the FVRA. In terms of standing, Gupta argued that English is harmed because she cannot engage in her statutory right to function as the CFPB director. Read more here.