February 27, 2023
Supreme Court to Review CFPB
On February 27th, the United States Supreme Court agreed to review a lower court decision that has the potential of nullifying a wide swath of regulations and enforcement actions taken by the Consumer Financial Protection Board (CFPB). Through the Department of Justice, the CFPB requested an expedited hearing in April so the case can be decided by the beginning of July. Most Court-watchers believe the Court is more likely to hear the case during its Fall term beginning in October.
At the Webinar held in January, AIS discussed this case involving a challenge to the CFPB’s enforcement of the Payday Lending Rule. The Court of Appeals for the Fifth Circuit struck the CFPB’s action on the grounds that its funding is unconstitutional because it is not made through the appropriations process.
In its brief asking the Supreme Court to grant review, the CFPB said that Fifth Circuit’s decision "threatens the validity of virtually all CFPB past actions, including numerous regulations that are critical to consumers and the financial industry.”The case is Consumer Financial Protection Bureau, et al. v. Community Financial Services Association of America, Limited, et al., No. 22-448.