U.S. Supreme Court Upholds CFPB Funding Structure
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The United States Supreme Court has declined an effort to reduce the Consumer Financial Protection Bureau (CFPB) funding.
The Community Financial Services Association of America (CFSA), a business organization for payday lenders, initiated this lawsuit against the CFPB. This was because the regulator’s funding breached the Appropriation provision of the U.S. Constitution.
CFPB Was Accused Of Breaching The Funding Mandate Of The U.S. Constitution
The CFPB was established as part of the 2010 Dodd-Frank Act. Unlike many U.S. federal organizations that get funded through Congress, the regulator is funded by a limited sum delivered by the Federal Reserve every year.
The CFPB stated that Wall Street lobbyists and lawbreaking companies have been plotting to defund vital consumer protection regulations for several years. The court has dismissed their controversial idea that would have destroyed the U.S. financial markets.
The court rejected the opinions of the quick cash loan advocates and clarified that the CFPB is not going anywhere.
Congress formed the CFPB to serve as the principal federal regulator safeguarding consumers from abusive and predatory actions in the financial industry. Since the CFPB began operations in 2011, it has provided over $20 billion in economic assistance to many consumers. It has also resolved complaints from over 4 million consumers.
US President Joe Biden stated that despite years of criticisms from radical Republicans and powerful interest groups, the Supreme Court has affirmed that the CFPB’s financial authority is lawful. The court also clarified that the regulator’s strong history of consumer protection will remain intact.
The CFPB Has Returned Over $20 Billion In Stolen Funds To U.S. Families
Elizabeth Warren, who initially suggested the agency before her time as a Senator, gave her opinion regarding the decision. She said that the CFPB is here for the long haul. In a 7-2 verdict, the Supreme Court abided by the law and affirmed that the funding structure of the CFPB is legitimate.
Warren added that for the past ten years, the regulator has opposed the predatory lenders and top banks that attempt to dupe hardworking individuals.
The consumer agency has given back over $20 billion in stolen funds to U.S. families. She further stressed that this attack isn’t the last from the banks, Wall Street, and their Republican partners.
The CFPB operates as an independent entity within the U.S. government tasked with protecting consumers in the financial industry. CFPB’s jurisdiction comprises debt collectors, foreclosure relief services, mortgage-servicing operations, payday lenders, securities firms, credit unions, banks, and other financial institutions in the U.S.
