Advocacy group outlines dangers of case involving CFPB funding
An advocacy group representing consumer interests in the financial marketplace says an upcoming Supreme Court case could have implications for a range of regulatory actions that protect consumers.
Americans for Financial Reform (AFR) says that if the U.S. Supreme Court rules in favor of payday lending interests in the case CFPB vs. CFSA, a number of regulatory enforcement actions issued by the Consumer Financial Protection Bureau could be in danger, thus harming consumers.
“A Supreme Court decision affirming the Fifth Circuit’s decision on the constitutionality of the CFPB’s funding structure could permanently hamper the CFPB’s ability to do the important work that Congress empowered it to do when it created the agency in response to the 2008 mortgage crisis and Great Recession,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform Education Fund. “The courts halting CFPB enforcement while they await the outcome of CFPB v CFSA is a preview of the damaging domino effect on rules that govern our mortgage market and more, that will result from a bad SCOTUS ruling.”
A Constitional law expert agreed that the outcome of the case could be dangerous for consumers.
Brianne Gorod, chief counsel at Constitutional Accountability Center, said:
“A decision disregarding Congress’s choice and affirming the Fifth Circuit’s decision could have disastrous consequences, threatening all of the CFPB’s important work protecting consumers and imperiling the stability of the financial markets. These cases show how much is at stake at the Supreme Court.”