Battle for control of U.S. consumer finance agency heads to court

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Leandra English, who was designated to become the acting director of the U.S. Consumer Financial Protection Bureau (CFPB), has a filed a lawsuit to prevent President Donald Trump’s pick from taking control of the independent agency.

English, citing the Dodd-Frank Act of 2010, argues that she became acting director once the resignation of Richard Cordray became effective at midnight on Friday. The Trump administration, however, argues that the president has the power to name an acting director under the Federal Vacancies Reform Act.

“As the rightful Acting Director of the Bureau, Ms. English brings this action against President Trump and Mr. Mulvaney seeking a declaratory judgment and, on an emergency basis, a temporary restraining order to prevent the defendants from appointing, causing the appointment of, recognizing the appointment of, or acting on the appointment of an acting director,” the lawsuit said.

Trump, in a statement issued on Friday evening, appointed Mick Mulvaney, the Director of the Office of Management and Budget (OMB), to take over as acting director. Critics have said that Trump’s appointment of a cabinet official is contrary to the spirit of CFPB as an independent agency.

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