Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited
| Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited | |
|---|---|
 | |
| Argued October 3, 2023 | |
| Full case name | Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited, et al. |
| Docket no. | 22-448 |
| Argument | Oral argument |
| Questions presented | |
| Whether the court of appeals erred in holding that the statute providing funding to the Consumer Financial Protection Bureau (CFPB), 12 U.S.C. 5497, violates the Appropriations Clause, U.S. Const. Art. I, § 9, Cl. 7, and in vacating a regulation promulgated at a time when the CFPB was receiving such funding. | |
| Court membership | |
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Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited (Docket 22–448) is a pending United States Supreme Court case related to the Consumer Financial Protection Bureau's funding mechanism.
Background[edit]
The Consumer Financial Protection Bureau was created after the financial crisis of 2007–2008 as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act. Its structure included a director that could not be fired by the President except for cause, and the ability to request funding from the Federal Reserve rather than the United States Congress. In Seila Law LLC v. Consumer Financial Protection Bureau (2020), the Supreme Court of the United States held the CFPB director's removal protections were unconstitutional.
Lower Courts[edit]
The Community Financial Services Association of America, a trade group for the payday lending industry, filed a lawsuit in 2018 challenging a CFPB rule restricting payday lending. The United States District Court for the Western District of Texas upheld the rule. The CFSAA appealed to the United States Court of Appeals for the Fifth Circuit, which in October 2022 upheld the rule against an Administrative Procedure Act challenge, but held it must be vacated because it was created when the agency was funded by the Federal Reserve. The Fifth Circuit held this funding mechanism was unconstitutional.[1]
Supreme Court[edit]
Less than a month after the Fifth Circuit decided the case, the CFPB filed a petition for a writ of certiorari at the Supreme Court, and the Biden administration asked for the Supreme Court to "fast track" the case to be heard during the current 2022 Supreme Court term.[1][2] The Supreme Court granted certiorari on February 27, 2023, and denied the motion to expedite consideration of the case.[3] Oral argument was held on October 3, 2023.[4][5][6] The case was argued, on behalf of the CFPB, by Solicitor General Elizabeth Prelogar and, on behalf of the CFSAA, by former Solicitor General Noel Francisco.
References[edit]
- ^ a b Golde, Kalvis (November 18, 2022). "Government appeals decision against Consumer Financial Protection Bureau". SCOTUSblog. Retrieved November 21, 2022.
- ^ Ford, Matt; Noah, Timothy (February 27, 2023). "The Supreme Court Could Destroy the Consumer Financial Protection Bureau". The New Republic. ISSN 0028-6583. Retrieved February 28, 2023.
- ^ Howe, Amy (February 27, 2023). "Court will review constitutionality of consumer-watchdog agency's funding". SCOTUSblog.
- ^ "Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited". SCOTUSblog. Retrieved October 3, 2023.
- ^ Iacurci, Greg (October 3, 2023). "Supreme Court case may gut the CFPB: Consumer watchdog's 'future is on the line,' group says". CNBC. Retrieved October 3, 2023.
- ^ Bravin, Jess; Ackerman, Andrew (October 3, 2023). "Supreme Court Justices Wary of Argument Against Financial Watchdog's Funding". The Wall Street Journal. News Corp. Retrieved October 3, 2023.
External links[edit]
- Text of Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited, 601 U.S. ___ (2024) is available from: Oyez (oral argument audio)
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