Consumers stand up for CFPB as agency prepares to defend itself before Supreme Court

Monday, February 27, 2023

The U.S. Supreme Court has accepted a case for next fall, Consumer Financial Services Association of America (CFSA) versus Consumer Financial Protection Bureau (CFPB), that argues that the CFPB's funding, via the Federal Reserve rather than Congress, is unconstitutional.

Congress chose to require independent funding for the CFPB when it created the Consumer Bureau in 2010. The CFPB is one of many federal financial regulators (Federal Reserve, FDIC, OCC, etc.) that are independently funded.

“Congress had the foresight to give the CFPB financial independence to ensure that the Consumer Bureau could focus on protecting consumers rather than rely on the whims of Congress—and who is in power—to know if it can do its job," said Consumer Action’s director of consumer protection, Ruth Susswein.

Since its inception, the CFPB has been a consumer champion, returning more than $15 billion to harmed individuals, protecting consumers from unfair and deceptive practices, and holding companies in the credit card, mortgage, bank, auto and student lending markets accountable. 

“We are confident that the Supreme Court will conclude that the CFPB’s independent funding is constitutional, and that the agency is of great service to the American consumer,” said Susswein.

Click here to read the case filing.