If the Trump administration decides not to defend the legality of recently imposed Consumer Financial Protection Bureau rules, federal courts may still be reluctant to vacate the rules on that basis alone, McGuireWoods partner Jonathan Ellis told Politico in a Jan. 13, 2025, story.
The Trump administration and the new Republican-controlled Congress are looking for ways to undo some CFPB regulations, Politico reported. One option is that the CFPB could decide not to defend a rule that is challenged in court.
But Ellis, co-leader of McGuireWoods’ appellate practice, told Politico that even if incoming CFPB leaders decide not to defend the new regulations, that may not quickly undo the rules.
“Federal courts often hold that judicial vacatur is appropriate only if the court reaches the merits and independently finds that the rule is unlawful,” Ellis said. And even in the absence of a defense from the agency, third parties are often willing to intervene to defend the lawfulness of a rule that they support, he noted.