So yesterday’s big news was the Supreme Court’s decision to hear arguments in a case related to whether the Consumer Financial Protection Bureau’s funding structure is constitutional or not. The impact and ramifications of the outcome of this case — which might not be known for a year or so because it’s expected that the Court will hear the case next term — are profound. If you want details on the case and what’s at stake, you can click here. After the decision was announced, lawmakers and others started sharing their opinions, so I have compiled some of those to share with you.
Sen. Elizabeth Warren [D-Mass.]
“Despite years of desperate attacks from Republicans and corporate lobbyists, the constitutionality of the CFPB and its funding structure have been upheld time and time again. If the Supreme Court follows more than a century of law and historical precedent, it will strike down the Fifth Circuit’s decision before it throws our financial markets and economy into chaos.”
Rep. Patrick McHenry [R-N.C.]
“As Republicans have said for years, the CFPB’s unconstitutional funding structure improperly insulates it from Americans’ representatives in Congress. This problem is compounded when the Bureau is led by a rogue regulator, as it is now. Director Chopra is returning the CFPB to its Obama-era regulation by enforcement approach that harms both consumers and our economy. Republicans promised the American people we would restore accountability to the federal bureaucracy. The House Financial Services Committee is committed to delivering transparency with legislation like Congressman Barr’s TABS Act to bring the unaccountable CFPB under the annual appropriations process.”
Rob Bonta, Attorney General of California
“The CFPB plays a critical role in advancing consumer protections and regulating the financial services industry. I am pleased that the Supreme Court will review the misguided Fifth Court decision, which if allowed to stand threatens to upend over a decade of important enforcement and regulatory work by the CFPB and throw the consumer financial markets into turmoil. With consumers already struggling to make ends meet, I urge the Supreme Court to overturn the confusion and regulatory chaos caused by the Fifth Circuit’s decision. CFPB’s funding structure and work remain constitutional, a critical partner to the states, and an important safeguard to protect consumers from predatory practices.”
Sen. Mark Warner [D-Va.]
“Congress created the Consumer Financial Protection Bureau after the financial crisis to enforce consumer protection laws and make sure the banks, credit card companies and other financial institutions aren’t abusing their powers to take advantage of everyday Americans. If the Fifth Circuit’s decision, which could make every rule put forward by the CFPB unconstitutional, is permitted to stand, there will be financial chaos as all sorts of transactions governed by CFPB policies could grind to a halt, and consumers would be left without the protections they expect and deserve.”
Sen. Sherrod Brown [D-Ohio]
“Congress created the CFPB so that consumers could have an agency dedicated to one thing: fighting for their interests, not Wall Street’s. The CFPB’s funding structure is constitutional and the CFPB should be allowed to continue its crucial work. A delay in hearing this case only hurts consumers, as this is an urgent issue that has horrifying implications for consumers and our entire financial system. I will always fight for the CFPB so that it can continue its important work helping create an economy centered around working families.”
Sen. Tim Scott [R-S.C.]
“The CFPB has long been an agency that lacks transparency and seeks to operate beyond its jurisdiction. I look forward to reviewing the Supreme Court’s decision, when the time comes, and continuing my efforts to hold the CFPB accountable to the American people and Congress.”
Neal Bradley, U.S. Chamber of Commerce
“The Chamber welcomes the Supreme Court’s announcement today that it will hear a case challenging the funding mechanism of the Consumer Financial Protection Bureau. The CFPB’s broad power touches every consumer in the United States and its decisions often have far-reaching consequences. Recent actions by the agency to penalize responsible consumers who pay their bills on time is only the most recent example of why oversight is necessary.
“The lack of accountability to Congress has forced the plaintiffs in this case, as well as the Chamber in separate litigation, to go to court to defend against regulatory overreach. Given the significant impact it has on the financial services available to U.S. consumers, the CFPB should be brought under the appropriations process and have its budget subject to congressional oversight.”
Nadine Chabrier, Center for Responsible Lending
“This case imperils the stable functioning of our government and our economy – all so payday lenders can continue to bleed borrowers dry. If the Supreme Court accepts this deeply flawed argument against CFPB funding, it would set a dangerous precedent that would be used to challenge agencies with legally indistinguishable funding, including the Federal Reserve, FDIC, Medicare, and Social Security.”