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Citing "regulatory chaos" caused by the fight over who is the
legal leader of the regulator, the Lower East Side People's
Federal Credit Union called on a federal court to remove
Mulvaney, Trump's budget director, and affirm Leandra English,
the CFPB's deputy director, as the proper acting head of the
bureau.
The lawsuit, filed in U.S. District Court in Manhattan,
represents a new legal front in an ongoing battle over who
should be running the regulator.
English has insisted she should run the agency after being named
deputy director by Richard Cordray, who resigned in November.
But Mulvaney has been named acting director by Trump, and has
announced a freeze on new regulatory work while he reviews
agency policies.
English has her own lawsuit against the administration pending
in federal court, but Tuesday's lawsuit marks the first legal
challenge against the administration by an entity regulated by
the CFPB.
"The Credit Union does not know who is validly in charge of the
CFPB, who is authorized to make the rules, or whose rules to
follow," the credit union said in its complaint.
"The Court must resolve this regulatory chaos. It must determine
who is in charge of the Bureau. To the Credit Union, it is plain
that Leandra English is the only lawful Acting Director in
charge of the CFPB," the lawsuit said.
A Mulvaney spokesman did not immediately respond to a request
for comment.
A U.S. District Court judge last week sided with Trump and ruled
against English, allowing Mulvaney to serve as the agency's
acting head. English has continued to pursue her case.
(Reporting by Pete Schroeder; Editing by Jonathan Oatis)
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