WASHINGTON, D.C. – In a statement released today, Consumer Reports called on the U.S. Supreme Court to uphold the constitutionality of the Consumer Financial Protection Bureau’s funding. The Court has agreed to hear a case brought by the Consumer Financial Services Association, which represents payday lenders, that maintains that the CFPB’s funding through the Federal Reserve is unconstitutional.
“For more than a decade, the CFPB has worked tirelessly to protect families from predatory lenders and returned billions of dollars to consumers who were treated unfairly by banks and other financial firms,” said Chuck Bell, advocacy programs director for Consumer Reports “We need a strong and independent CFPB with the resources necessary to rein in abusive financial practices without political interference from powerful special interests. The Court should reject this attempt to undermine this critical watchdog so that it can continue to work to keep the financial marketplace safe and fair for all consumers.”
Congress created the CFPB in 2010 with independent funding through the Federal Reserve in order to shield it from the political pressure wielded by the powerful financial industry. In addition to the CFPB, the Federal Reserve, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are among other financial regulators that receive their funding independent from the annual congressional appropriations process.
Michael McCauley, michael.mccauley@consumer.org, 415-902-9537