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The CFPB isn’t getting any love from the DOJ in lawsuit with PHH

(NEWS) The CFPB is getting sued and the DOJ has decided they won’t be helping the consumer watchdog agency win.

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CFPB vs DOJ

The Department of Justice (DOJ) on Friday filed their long awaited brief in the Consumer Finance Protection Bureau (CFPB) vs PHH Corporation case. The motion pits the DOJ against the consumer watchdog agency.

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What beef could the DOJ possible have with an agency dedicated to protecting consumers? The debate all comes down to the CFPB’s unique structure, which the DOJ argues is unconstitutional.

Sovereign or nah?

“The Department of Justice argues that an independent agency with one sole individual at its head who can only be removed for cause is unconstitutional—and the exception permitted by the Supreme Court for independent agencies with a commission form of governance should not be extended to agencies with only one agency head,” explains Joseph Lynyak III, a partner at Dorsey & Whitney International Law Firm and one of the nation’s leading experts when it comes to the CFPB.

Essentially, the DOJ is arguing against the CFPB’s sovereignty.

According to the DOJ, the executive branch can’t effectively check the CFPB’s powers due to a “for cause” removal provision. This provision, only allows the CFPB’s director to be removed for “inefficiency, neglect of duty or malfeasance of office.”

The “for cause” clause

This “for cause” provision has been a major source of contention for the CFPB.

Last October, the the U.S. Court of Appeals for the Washington, D.C. Circuit struck down the clause.

With Friday’s motion, the DOJ has sided with the appeals court in favor of removing the clause and allowing the president to remove the CFPB’s director at will.

The real remedy

CFPB supporters may see this as a major blow to the agency. Others see striking down the “for cause” provision as a shortsighted, limited solution.

In fact, PHH, the mortgage lender that started it all by challenging the CFPB’s constitutionality wants the agency completely dissolved.

However, history shows that the courts are not willing to go down that route. “Unlike the legal position taken by PHH (which strongly argues that nothing can correct the constitutional defects inherent in the structure of the CFPB), the Department of Justice argues in its brief that the remedy adopted by the three-judge panel (i.e., striking the “for cause” provision and allowing the president to fire the Director of the CFPB without cause) is correct.

Importantly, this remedy was the focal point of a Supreme Court case written by the Chief Justice in 2010,” Lynyak points out. Lynyak is referring to 2010’s Free Enterprise Fund v. Public Company Accounting Oversight Board ruling. In that case, the court also struck down the “for cause” provision.

Constitutionality

“In addition, while the DOJ concedes that the PHH case could be decided without addressing the constitutional issues, it correctly indicates that at some point in the immediate future the constitutionality of the CFPB will have to be addressed,” adds Lynyak.

This may eventually leave the CFPB’s future in the hands of the nation’s highest court.

“Whether the determination is made in this case or another case, eventually an inferior court will issue a decision adverse to the CFPB that will force the U.S. Supreme Court to take up the case,” Lynyak tells Bloomberg Law.

It could go all the way

It’s hard to predict whether this case will go all the way to U.S. Supreme Court.

What we do know is that the court’s ruling could have a major effect on any business offering financial services.

A rehearing is scheduled for May 24. If the court upholds their decision to get rid of the “for cause” provision, President Trump can dismiss the CFPB’s current director, Richard Cordray. Trump could then replace Cordray with a director he deems more business friendly.

Consistent in its inconsistency

Regardless of who takes the director role, the financial services industry should be open to both the pros and cons of allowing the CFPB’s director to be replaced at will by the president.

A business friendly director appointed by one president, can just as easily be replaced by the next administration.Click To Tweet

The cost of an inconsistent CFPB can’t be overlooked in the push to reform the troubled agency.

#CFPB

Staff Writer, Arra Dacquel is a San Francisco based writer. She has a bachelor’s degree in political science from UC Davis and is currently studying web development. She’s obsessed with tech news and corgis, but not in that order.

Business News

Debunking ridiculous remote work myths (and some serious survival tips)

(BUSINESS) People new to remote work (or sending their teams home) are still nervous and have no concept of what really happens when people work from home. We’ll debunk that.

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With an entire nation (or planet) moving to a remote workforce in the midst of a global pandemic, we’re hearing some pretty wild misunderstandings of what remote work is, and how it functions effectively. Bosses are scrambling to buy up spying tech for some good ol’ hamfisted enforcement.

For those of us who have been remote for ages, it’s fascinating to watch the transition. And also offensive. People tweeting about getting to take naps and not wear pants. That’s not remote work, that’s just you being unsupervised like a child for five minutes, KEVIN.

I was chatting with my buddy Michael Pascuzzi about remote work (full disclosure, he’s a Moderator in our Remote Digital Jobs group) and despite cracking many jokes, we realized there is a lot of noise to cut through.

In the spirit of offering meat for you in these hungry times, Michael offered to put his thoughts on paper. And why should you listen to him? It’s because he has worked for several tech companies, both startups and enterprises including TrackingPoint, 3DR, and H.P. He currently works remotely for Crayon, a Norwegian Digital Transformation, and Cloud Services company. He holds an M.B.A. in Digital Media Management from St. Edward’s University and a B.A. in Art History from the University of Connecticut. He’s also wonderfully weird. And a remote worker.


In his own words below:

So you’re working remotely now. Cool.

At first, it feels.. strange. But, as you get into it, you’ll get comfortable with your routine.

I’m sure you have a preconceived notion of remote workers. You probably thought this type of work was just for Unabombers and nomads. Maybe you don’t think you have a real job any longer because you’re doing it in your Underoos.

While, yes, working from home does allow you the option to work in your underwear, you still probably shouldn’t. There’s a lot to working from home and getting work done. You’re going to get a crash course in the coming weeks. I’m going to give you a leg up on your peers by telling you what you really need to know and what nobody else is telling you about remote work.

The following is a cheat sheet to getting ahead of your peers – and maybe make a case for you to continue in this lifestyle after the pandemic has subsided.

1. Working remotely doesn’t mean playtime

Right now, you’re roughly one week into your new working arrangement. You’ve got your table, your computer, and your whole set up. You’re also taking advantage of:
– The creature comforts of home
– Nobody looking over your shoulder

Irish coffees for breakfast, no pants-wearing, and naps during lunch are all available to you now that you work from home. And let’s not forget about #WhiteClawWednesdays!

These are all terrible ideas.

Here’s why:

If you come to a phone/video meeting drunk, we’ll know. If you’re on a video call with bedhead and a wrinkled shirt, we’ll assume you’re unprofessional. White Claw Wednesdays are probably okay in moderation, but taking a shot every time Karen says something annoying on a conference call is a bad idea!

Working from home should be an enjoyable and comfortable experience, but it shouldn’t be fun. It’s still work; and work sucks.

2. Working remotely should give you a better work/life balance:

Initially, you’ll find it hard for you and for your employer to separate your work hours from your life hours. Staying working only during your work hours is VITAL to keeping your sanity. Microsoft Office 365 has a tool that measures your wellbeing in “My Analytics.” Below is a picture of my wellbeing for this month. It’s not good.

digital accounting of wellbeing

The leadership team and managers at my company stress wellbeing. We take that chart seriously, and failing to have quiet days doesn’t make you look like a hard worker. Hard workers get shit done 8-5.

3. Working remotely also doesn’t mean firing the nanny

Working remotely doesn’t equal additional family time. Your work hours are your work hours. The pandemic quarantine doesn’t leave a whole lot of options for families to coexist without overlapping.

And it’s okay to occasionally have a “coworker.” But, you need to create your own private workspace within the hustle and bustle of homeschooling going on around you.

Here are a few more best practices you won’t read anywhere else:

You’ll need to learn to distance yourself from “work” when no longer at your “office.” This means powering down at the end of the day. Having a work/life balance when you work from home tends to swing in the opposite direction than you probably assumed; work can take over your life.

  • You’re going to have to turn off mobile notifications 100% of the time. It’s a pandemic, you’re not traveling; you don’t need them on – ever.
  • Turn off your computer at the end of the day. It’s good for your computer, and it’s fantastic for your mental health.
  • If your manager needs to reach you or you need to contact a direct report, just follow the wise words of Kim Possible: Call me, beep me if you wanna reach me.
  • You must wear pants. (FYI guys, dark leggings look like real pants and are super comfortable) Get ready for your day as if it were a regular office. Take a shower, shave, comb your hair, eat breakfast in the kitchen, wear jewelry. Look like you give a damn.

  • You must turn on your camera for video calls (and please don’t take your laptop into the bathroom. no field trips). Nonverbal communication accounts for 93% of all communication. We need to see your face, your posture, your eyerolls.
  • All of your calls should be video calls. You’ll find you’ll miss humans if you do not see them daily.
  • Clean the room (or at least directly behind you). We shouldn’t see laundry and quarantine snacks in the background. We absolutely should never HEAR you opening a bag of chips.
  • Close your door. Kitchen, office, bedroom… whatever you’re using needs to be YOUR space. It’s your office. Your clubhouse. Only one Homer allowed.

And for the love of all that isn’t COVID, please wear pants.

More resources:

I’m on a team at Crayon that freely consults on working remotely and cloud technology. This isn’t a sales pitch. If you have questions or need productivity tips, you can always email my team directly at contact.us@crayon.com.

Meanwhile, here are some additional resources to dig into:

  1. 20 tips for working from home
  2. Guide to engaging a distributed workforce
  3. Top 15 tips to effectively manage remote employees
  4. How to make working from home work for you

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Business News

Will House Democrats pass the new Senate stimulus package?

(BUSINESS NEWS) A new stimulus package for the COVID-19 pandemic has come from the senate, the question now is will the House Democrats accept and pass it?

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Congress can’t seem to agree about COVID-19 relief. Yesterday, the Senate and the White House came to an agreement on a $2 trillion economic stimulus package. The Democrats are now the hold-up. House Speaker Nancy Pelosi has publicly stated that the House will be reviewing the bill, but there is no commitment as to whether the bill will pass or not. The Hill reported that some House Democrats are concerned that they have not provided any input.

What’s in the measure?

According to CBS News, the actual text of the measure hasn’t been released, but they did get information from Minority Leader Chuck Schumer about some of the contents:

• Expanded unemployment benefits to boost the maximum benefit and to give laid-off workers full pay for four months
• Direct payments to individuals making less than $99,000
• $130 billion for hospitals
• $367 billion in loans for small business
• $150 billion for state and local governments
• $500 billion for large businesses
• Creates an oversight board to govern large loans
• Prohibitions to prevent President Trump and family from getting federal relief

Will the measure pass?

Pelosi has said that this measure is a big improvement over the Republican’s first proposal. It seems as if she is working hard to move the measure through the House, but given the current state of politics, it’s hard to believe that anything will be done without some debate. Many Democrats have pushed for a food stamp increase, which is not in the current measure. However, the Democrats did win on the oversight board that protects the employees of the companies who are getting loans. Money for states was another Democrat victory in the current measure.

If the bill can pass the House unanimously, lawmakers won’t have to vote on the floor. If the House can’t agree, the House will need to reconvene and amend the Senate measure or pass their own measure. Under the COVID-19 travel restrictions and quarantine issues, it might be difficult to get anything done quickly. The urgency is real, but so is the responsibility. The Democrats want the money to do what Congress intends, not for CEO compensation or stock buyouts.

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Business News

MLMs under investigation for claiming they have a COVID-19 miracle cure

(BUSINESS NEWS) Guys, there is currently no cure for COVID-19 and it’s definitely not being sold by your friend in an MLM or whatever their company calls themselves.

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MLM miracle cure

It should go without saying that essential oils are NOT a cure for COVID-19, but unfortunately, the MLMs are at it again. Yes, that’s right, there are people trying to market their oils, pills…etc. as a way to stave off the pandemic that is currently upon us. So before we go any further, may I remind y’all that there is no miracle cure to treat or prevent the virus.

Do not use MLM products as a replacement for the actions laid out by the Center for Disease Control and Prevention (CDC), like social distancing and vigorous hand washing.

Don’t get me wrong, if you or your friends or relatives want to use MLM products on top of the advice given by doctors and scientists, go ahead. But advertising that these products can cure a disease that’s currently spreading across the world isn’t just irresponsible, it’s dangerous. Even if you don’t catch it, you’re still at risk of spreading the virus.

As of right now, the FTC is investigating seven companies over COVID-19 related claims, but you should be suspicious of anyone claiming they have something that will help. Do your homework. Sources like the CDC and WHO (World Health Organization) are great places to start if you’re unsure about information that you see on social media or hear from a friend. Disinformation is everywhere, so it’s vital to keep track of sources.

If you do stumble across a friend or family member trying to slip in MLM sales during this global crisis, be civil in your rebuttals. Many people join MLMs because they’ve been struggling to make money elsewhere. MLMs are notorious for targeting immigrants and stay-at-home moms. With COVID-19 bringing a slew of job loss, financial circumstances for many are more precarious than ever, which could very well put pressure on people in MLMs.

In short: MLM corporations that advertise a miracle cure? I didn’t think these companies could be more evil, but I was wrong. Your friend on Facebook touting their essential oil as a miracle cure? Definitely not great, but there might be more going on than meets the eye, so be honest with them, but also be kind.

It’s no magic cure, but a drop of kindness could go a long way right now.

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