Lenders expect suits over CFPB head’s appointment

When President Barack Obama used a recess appointment to install former Ohio attorney general Richard Cordray to the top position at the newly created federal Consumer Financial Protection Bureau, many expected it would lead to controversy.

But now, an analyst at Citigroup has said that the appointment, which some have called unconstitutional, will also likely lead to lawsuits "from every quarter." The groups who bring legal challenges to Cordray's appointment are expected to range from individuals, community and labor groups or even the U.S. Congress.

Republican lawmakers opposed the appointment of anyone to head up the CFPB, an agency that they believe enjoys too much executive power. Indeed, within a few days of his appointment, Cordray significantly expanded the CFPB's purview to increase protections for consumers when they deal with financial products.

Of course, consumers can also protect themselves from certain issues that may arise with regard to their credit by ordering copies of their credit reports and reviewing them carefully. Doing so may help them identify questionable markings that may be unfairly lowering their score.