WASHINGTON–In a case that will have the close attention of credit unions and other financial institutions, the Supreme Court has announced it will hear a lawsuit challenging the funding mechanism of the Consumer Financial Protection Bureau (CFPB). CFPB Director Rohit Chopra was asked about the Supreme Court decision during an appearnace at CUNA's GAC and he said he welcomes the review.
The 5th U.S. Circuit Court of Appeals had in October 2022 ruled the CFPB’s funding mechanism to be unconstitutional. That three-judge panel had ruled that placing CFPB funding outside of the process violates the U.S. Constitution’s structural separation of powers.
In a statement, CUNA said it has long supported placing the CFPB under the traditional appropriations process.
“It's been clear for some time that there are serious flaws with the CFPB's current structure and we have long supported Congressional action to restore accountability and oversight,” said CUNA President/CEO Jim Nussle. “The Supreme Court agreeing to hear the case on constitutionality highlights the urgency of this issue.”
Chopra Responds
Nussle also appeared with the CFPB's Chopra as part of a Q&A during the trade association's Governmental Affairs Conference here.
“We’re very pleased the Supreme Court is reviewing the 5th Circuit’s decision," Chopra said. "At the end of the day we actually want there to be certainty about rules that were written 10 years ago, safe harbors put into place. We don’t want a situation where financial institutions all over the country are getting sued because of a lack of clarity of actions. I’m hopeful this is the next step to create that clarity, and we’ll let the process move forward."
CUNA said it has long supported placing the CFPB under the traditional appropriations process.