Arguments begin Tuesday in challenge to CFPB constitutionality
The U.S. Supreme Court will hear arguments in Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America starting Tuesday, a lawsuit challenging the constitutionality of the CFPB’s funding structure.
The 5th U.S. Circuit Court of Appeals found the CFPB’s funding mechanism unconstitutional in an October 2022 decision, and the U.S Supreme Court announced in February it would hear the challenge.
CUNA, NAFCU, and the American Association of Credit Union Leagues filed an amicus brief in the lawsuit in July, noting CFPB is structured differently than other financial regulators, including NCUA, which is funded by credit unions and provides regulation and services to credit unions.
The brief calls for the court to affirm but stay the lower court’s judgement to minimize market disruptions and allow Congress to create a constitutionally sound structure for the bureau.