Groups call on Supreme Court to back consumer protection bureau
A coalition of consumer advocacy groups is calling on the U.S. Supreme Court to take action to protect the funding structure of the Consumer Financial Protection Bureau (CFPB).
The consumer advocates say a suit brought by representatives of the payday lending industry threatens to undermine key protections offered by the federal regulator.
The lawsuit challenges the underlying funding mechanism of the CFPB and if the Supreme Court upholds a 5th Circuit ruling, funding for the agency would be subject to congressional approval.
Consumer groups say an independent agency free of political funding restraints is essential to ensure consumers get a fair shake.
In highlighting the importance of the decision, Nadine Chabrier, Senior Policy Counsel, Center for Responsible Lending said:
“The decision could not only invalidate an important protection against predatory lending, but could also undermine the CFPB ability to enforce the law through its enforcement powers. CFPB has won $17.5 million in restitution or canceled debts for 200 million people. These actions assisted homeowners who were defrauded by their lenders, depositors forced to pay illegal overdraft fees, borrowers facing racial discrimination, and people with inaccurate information on their credit reports.”