CFPB In Light of Chevron Doctrine Overturned<\/span><\/h6>\n

ARA Members, partners and colleagues,\u00a0<\/span><\/p>\n

By a 6-3 majority,\u00a0the Chevron Doctrine<\/strong>\u00a0(named after the 1984 opinion of the Supreme Court in\u00a0Chevron U.S.A. Inc. v. National Resources Defense Council, Inc<\/em>., 467 U.S. 837) has been overturned.\u00a0<\/span>
\n\u00a0<\/span>
\nThe Supreme Court\u2019s opinion was issued on Friday, June 28 in\u00a0Loper Bright Enterprises et al v. Raimondo, Secretary of Commerce, et al<\/em>, now referred to in discussions as\u00a0Loper Bright.<\/strong><\/span>
\n\u00a0<\/strong><\/span>
\nPut simply, under the Chevron Doctrine, courts had to apply a two part test in assessing the actions of federal agencies. If the statute adopted by Congress was clear on the issue before the court, the court had to follow congressional intent. However, if the statute was ambiguous on, or simply did not address, the issue before the court, the court had to defer to the agency\u2019s interpretation as long as it was reasonable, even though the court would have reached a different interpretation.<\/span>
\n\u00a0<\/span>
\nWith the overruling of the Chevron Doctrine, going forward, generally courts should no longer give mandatory deference to a regulation (either an existing regulation or one promulgated in the future) by a federal agency empowered by Congress to issue regulations under a federal statute.<\/span><\/p>\n

The opinion is based entirely on Section 7 of the Administrative Procedure Act (the \u201cAPA\u201d). Section 7 specifies that courts, not agencies, will decide \u201call relevant questions of law\u201d arising on review of an agency regulation.<\/span>
\n\u00a0<\/span>
\nClearly, the opinion will jeopardize the ability of agencies to promulgate regulations that will likely be upheld by the courts. It is more likely that, going forward, regulations will be challenged either directly in an action against the agency under the APA, or collaterally in a private lawsuit against a defendant whose defense is that it relied on and complied with an agency regulation.\u00a0<\/span>
\n\u00a0<\/span>
\nWhile the demise of\u00a0Chevron<\/em>\u00a0is important for all federal agency actions,\u00a0the CFPB may face more consequences than many other agencies, given its aggressiveness in interpreting federal statutes and pushing the envelope with respect to its own authority.\u00a0<\/em><\/strong><\/span>
\n\u00a0<\/span>
\nIt is important to note that Loper Bright does not invalidate previous rulings. The opinion will apply to all non-final cases in which the legality of agency regulations are being challenged and to all lawsuits initiated in the future against any regulations whose legality is in question.<\/span>
\n\u00a0<\/span>
\nThis decision does introduce concerns in the industry and we know industries need certainty to conduct business. It also opens the door for an avalanche of lawsuits challenging regulations directly or in private lawsuits.<\/span><\/p>\n

Sincerely,<\/span><\/strong>
\nThe ARA Board<\/strong>\u00a0<\/span><\/p>\n

<\/a><\/p>\n

CFPB In Light of Chevron Doctrine Overturned – CFPB In Light of Chevron Doctrine Overturned – CFPB In Light of Chevron Doctrine Overturned<\/span><\/h6>\n

CFPB In Light of Chevron Doctrine Overturned – Consumer Financial Protection Bureau<\/a> – CFPB<\/a> – American Recovery Association<\/a> – ARA<\/a> – Repossess<\/a> \u2013 Repossession<\/a> \u2013 Repossession Agency<\/a> – <\/span>Repossessor<\/span><\/a><\/span><\/h2>\n","protected":false},"excerpt":{"rendered":"

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