Payday Lenders Challenge Financial Consumer Watchdog's Budget Structure In Supreme Court: What It Means For Your Wallet
The U.S. Supreme Court is scheduled to hear a case on Tuesday concerning the funding structure of the Consumer Financial Protection Bureau (CFPB), the agency created following the 2008 financial crisis to protect consumers from predatory lending and other deceptive practices.
Central to the case, named CFPB v. Community Financial Services Association of America, is the constitutionality of the CFPB’s funding. Currently, the CFPB draws its annual funding from the Federal Reserve rather than from budgets approved by Congress. A lower court — the 5th U.S. Circuit Court of Appeals — ruled in October of last year that the CFPB's funding mechanism violates the Constitution's appropriations clau
