Washington, D.C – Today, the 2nd Circuit found that the Consumer Financial Protection Bureau’s (CFPB) funding mechanism is constitutional. The ruling fully rejects a previous 5th Circuit decision that has now been appealed to the Supreme Court.
“In contrast to the 5th Circuit ruling, the 2nd Circuits ruling affirms that the CFPB’s funding mechanism is neither unconstitutional nor novel,” said Rachel Gittleman Financial Services Outreach Manager with Consumer Federation of America. “Congress created the CFPB to protect consumers in light of consistent deregulation leading to the 2008 financial crisis. Like many other federal financial regulators, Congress provided it with a consistent funding stream and sufficient independence to safeguard its ability to ensure the financial marketplace is equitable, fair, transparent, and competitive for all American consumers. Like the 2nd circuit ruling, the Supreme Court should reject and reverse the 5th Circuit decision for the sake of consumers and the economy.”