Press Release

New Civil Liberties Alliance (NCLA) Tells Bureau of Consumer Financial Protection (BCFP): "Your Guidance Is Misguided"

NCLA calls out BCFP for unlawfully using guidance in place of rulemaking

WASHINGTON, D.C. — July 3, 2018 /PRNewswire-USNewswire/ -- In response to BCFP's Request for Information regarding its use of guidance, NCLA filed comments yesterday strongly rebuking the Bureau for its egregious abuse of guidance to effectively create new law without following statutory and constitutional requirements. Agency guidance is only allowed to clarify existing legal obligations, and not to create new ones.

"BCFP must stop unlawfully imposing new legal duties through guidance. The Bureau has engaged in de facto rulemaking without following legal requirements set out in the Administrative Procedure Act (APA) and if only for this reason, it has acted without constitutional authority," said Philip Hamburger, NCLA President.

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