Dispute Over Who Will Lead Consumer Watchdog Bureau Left To Federal Court
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MIAMI (CBSMiami) -- A dispute over who is in charge at the Consumer Financial Protection Bureau is now in the hands of a Federal Court.
Last night, Leandra English who was announced by the outgoing director as his temporary successor Friday, filed a federal lawsuit to block President Donald Trump's pick from taking over.
Mick Mulvaney arrived at the Consumer Financial Protection Bureau Monday and answered whether he thinks he has authority over the agency.
President Donald Trump named Mulvaney his budget director to temporarily take over the CFPB from Richard Cordray who resigned Friday.
Cordray, an Obama appointee, had already announced Deputy Director English would replace him.
English filed the lawsuit last night to block Mulvaney who has been an outspoken opponent of the watchdog agency.
Mulvaney claims regulations have made it harder for Americans to get credit approval.
"It turns up being a joke, and that's really what the CFPB really has been, in a sick, sad kind of way," said Mulvaney.
The CFPB was created in the wake of the 2008 financial crisis.
It is intended to protect consumers and serve as an independent watchdog over financial institutions.
"This is a hostile takeover of the Consumer Financial Protection Bureau by Wall Street, big banks, payday lenders and the financial services industry," said Public Citizen President Robert Weissman.
Mulvaney sent a memo to CFPB staffers telling them to disregard instructions from English and, if they receive further communications, to contact the general counsel.
President Trump, who has called the agency a total disaster, will nominate a permanent director that needs to be confirmed by the Senate.
In a memo obtained by CBS News last night, the CFPB's top lawyer agreed with the White House that President Trump does have the authority to name his own acting director.
