ARLINGTON, Va.–While emphasizing no conclusions should be drawn, one NAFCU exec believes the Supreme Court certainly sent some strong signals with the questions that were asked during a hearing over the constitutionality of the CFPB.
As CUToday.info reported here, the court heard arguments in a case in which the payday lending industry is the plaintiff and is alleging the funding for the CFPB is unconstitutional, as its budget is provided by the Fed and comes outside the congressional appropriations process.
Most analysts have said they believe the justices made clear they are pretty skeptical of the plaintiff’s arguments.
“It did go pretty well overall for the CFPB,” agreed NAFCU VP-Regulatory Affairs Ann Petros. “They seem to have received fewer pointed questions from the justices. Even the more conservative justices like justices Thomas, Kavanaugh and Barrett asked questions of the (plaintiff) that seemed to indicate they were a bit skeptical about the argument related to the appropriate checks and balances required of Congress when it comes to the use of their power of the purse and what exactly the appropriations clause requires. It did not appear that the double insulation argument was particularly relevant or persuasive for the justices.”
Petros noted that during the hearing numerous historical examples were shared of similar funding mechanisms in the federal government, with the Justice Department, arguing on behalf of the CFPB, basically saying “there is nothing new here and Congress can always make a decision to pull back the funding that it had given to the CFPB and adjust the way that it decides it's appropriations.”
Petros cautioned that it can be perilous to draw too strong a conclusion from the arguments made and the questions asked, but also noted some of the justices’ thinking on the issue did seem apparent.
Just Because It’s Autumn Doesn’t Mean Falling for Schemes to Overcharge You for CU Industry News. Instead, Try This Crisp Offer
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news”” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?