Saturday, July 20, 2024

Supreme Court opines CFPB funding structure is constitutional

Earlier this morning, the U.S. Supreme Court released its opinion stemming from a recent case that the funding structure of the Consumer Financial Protection Bureau is constitutional.

The Court’s decision came in a case involving Community Financial Services Association of America.

Still pending, however, is the American Bankers Association and Texas Bankers Association’s Sec. 1071 Final Rule suit that both challenges the Final Rule both on a funding basis and on the fact the Bureau failed to follow congressionally mandated protocol when it finalized its rules implementing Sec. 1071.

Besides the 1071 Final Rule suit, today’s Supreme Court decision has implications for two other legal actions against the CFPB involving the ABA: the bureau’s credit card late fee final rule and the CFPB’s update to its UDAAP manual. Those matters, along with the 1071 suit, will proceed on other legal grounds.

The OBA will keep you advised on further developments in all issues.