SCOTUS Decision Sets Promising Path for CFPB’s Future

May 16, 2024 

For Immediate Release:

SCOTUS Decision Sets Promising Path for CFPB’s Future 

WASHINGTON, D.C.  – Today, the U.S. Supreme Court in CFPB v. CFSA held that the Consumer Financial Protection Bureau’s (CFPB) funding under the Federal Reserve System is constitutional, reversing an earlier decision of the Fifth Circuit Court of Appeals.  

Below is the statement of Christine Hines, Senior Policy Director for the National Association of Consumer Advocates: 

“After the 2007-2008 financial crisis, the U.S. Congress determined that the Consumer Financial Protection Bureau, the new financial regulatory agency it was creating, should have meaningful independence and funding under the Federal Reserve System, as other federal financial regulators do. In today’s decision, the Supreme Court confirmed that Congress’ authority and decision to fund the Bureau via the Fed satisfies the Appropriations Clause of the Constitution.  

We are thrilled that the Supreme Court decidedly removed an ominous gray cloud that in many ways – and for far too long – interfered with the Bureau’s ability to enforce consumer protection laws and hold bad actors in the financial services sector accountable. It cannot be overstated how crucial this decision is in setting a positive path for the Bureau’s future. Now that the issue of the agency’s independent funding structure is settled, the Bureau can continue to pursue its mission to help protect the financial future of American families and ensure their fair treatment in the vast marketplace.”  

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