Supreme Court Set to Hear Challenge to CFPB Funding Model
Summary from AllSides News Team
The Supreme Court is expected to hear a case this week challenging the funding model of the Consumer Financial Protection Bureau (CFPB).
For Context: The CFPB was created in the aftermath of the 2008 financial crisis. Its stated objective is to ensure Americans “are treated fairly by banks, lenders and other financial institutions.” A group of payday lenders are arguing its funding model makes it overly insulated from congressional oversight.
“Unconstitutional”: The Wall Street Journal Editorial Board (Lean Right bias) argued the design of the CFPB is “unconstitutional” and violates the separation of powers outlined in the constitution. Since its creation, the CFPB has “increasingly expanded its remit and assumed responsibilities of federal agencies whose resources are constrained by Congress.” The Board determines the “current political distemper” to be in part the result of Congress having “increasingly abdicated its powers to the federal bureaucracy,” leaving citizens “vulnerable to regulators insulated from accountability.”
Good Government: A writer in the Washington Post (Lean Left bias) argued that if the CFPB is weakened, “we’ll all be poorer for it.” The writer states that the CFPB has returned “more than $17 billion to Americans separated from their money by financial sector shenanigans” and that “companies have spent over a decade attempting to hobble or dismantle the CFPB.” Citing work done by the CFPB since its formation, the writer determines, “Unless you’re a predatory financial-services company, the government, in this case, is here to help all of us.”
Featured Coverage of this Story
From the LeftThe CFPB has protected consumers. The Supreme Court could toss its work.
The Consumer Financial Protection Bureau should be seen as a wild success. Over its 12 years of existence, it has been responsible for returning more than $17 billion to Americans separated from their money by financial sector shenanigans.
Instead of being able to celebrate that achievement, the agency is in a fight for its life — and if it loses, we’ll all be poorer for it.
On Tuesday, the Supreme Court will hear a case filed by a trade group of payday-loan lenders against the CFPB. Last year, the U.S....
From the CenterUS Senator Warren: Supreme Court CFPB case threatens all bank regulators
A case due to come before the U.S. Supreme Court next week has the potential to expose every federal bank regulator to political inference while also jeopardizing Social Security and Medicare, the federal health insurance program, U.S. Senator Elizabeth Warren said on Thursday.
The court next week is due to hear arguments in a challenge to the constitutionality of the U.S. Consumer Financial Protection Bureau's (CFPB) funding. The Biden administration has said the case threatens the agency's ability to function, which would undermine the federal government's capacity to protect financial...
From the RightHigh Noon for the CFPB at the Supreme Court
The Supreme Court begins a new term on Monday, and its first week includes some important repair work on the Constitution’s separation of powers. On Tuesday the Justices will hear a challenge to the unconstitutional design of the Consumer Financial Protection Bureau (CFPB v. Community Financial Services Association).
Democrats in Congress constructed the CFPB to be insulated from accountability by the political branches. This fits the progressive vision of an administrative state run by supposed experts who will instruct Americans on proper behavior whether they like it or not.