A few months ago, we discussed the judicial challenges facing the Consumer Financial Protection Bureau (CFPB), and recently we received a crucial update. The Supreme Court announced it will take up the case that will determine the agency’s future. Since its founding by Congress after the 2008 financial crisis, the CFPB has protected consumers and provided stability to businesses. 

At Prosperity Now, we are dedicated to building an economy that allows everyone to thrive, and we know that the CFPB does essential work to protect consumers from discrimination, support renters and homeowners, bad actors in the marketplace and establish fair rules and regulations for businesses.  

Just some of the achievements by the CFPB include:  

• Returned $13.5 billion to the pockets of 175 million consumers who have been harmed by unlawful business practices; 

• Ordered corporate wrongdoers to pay $1.8 billion in civil penalties;  

• Issued rules and guidance to make the credit reporting, debt collection, mortgage servicing, credit card, and banking industries more transparent, equitable, and accountable to the public; and  

• Fought discrimination in the banking, credit and housing marketplaces, protecting consumers from being denied services or charged higher rates because of their race, sexuality, gender identity or national origin. 

While the Supreme Court did not agree to expedite the case, it will hear the case in the next judicial term, which begins in the fall of this year. The Court will hear the Administration’s appeal of an October decision from the 5th Circuit Court of Appeals which found the CFPB’s funding mechanism unconstitutional). We hope that the Supreme Court will recognize the incredibly flawed logic that has brought the case to this moment. Many other agencies are funded outside of the congressional budget process like the CFPB, including the Federal Reserve, the Federal Housing Finance Agency, the National Credit Union Administration, the Centers for Medicare and Medicaid Services and the Social Security Administration.  

This funding process insulates the CFPB from partisan negotiations and volatility and, most importantly, ensures the agency is consistently protecting consumers. We strongly support the CFPB’s mission and are confident that its funding mechanism supports that work.  

While we appreciate that the Supreme Court will take up this appeal, we are concerned about the continued period of uncertainty for both businesses and consumers alike. The CFPB’s work to ensure everyone has a fair seat at the table is necessary for our collective economic interests. We are hopeful that the Supreme Court will see that the previous ruling on the CFPB’s constitutionality was flawed and that protecting the agency and its independent funding is prudent for everyone. Join Prosperity Now’s Financial Security Network to join the effort to protect consumers and receive updates on the future of the CFPB: https://prosperitynow.org/get-involved/financial-security-network