- Term
- 2023-2024
Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited
The Consumer Financial Protection Bureau (CFPB) is a federal agency dedicated to protecting Americans from the unfair, deceptive, or abusive practices of financial service corporations like exploitative payday lenders — the industry represented by the trade group Community Financial Services Association (CFSA). In this case, the Supreme Court could have decided that the CFPB’s independent funding structure — and by extension, every regulation promulgated by the CFPB — is unconstitutional. At stake was the existence of the CFPB, the stability of the financial industry, and other government programs with similar funding structures, including Social Security and Medicare.
In a 7-2 decision on May 16, 2024, the Supreme Court ruled that the CFPB’s funding is constitutional, rebuking the Fifth Circuit and financial industry’s attack on the agency. Justices Alito and Gorsuch dissented.
