Supreme Court takes up challenge to consumer protection agency’s funding
The Supreme Court agreed to resolve a lawsuit brought by business groups that threatens the Consumer Financial Protection Bureau.
WASHINGTON — The Supreme Court on Monday agreed to resolve a legal challenge brought by business groups that threatens the federal agency charged with protecting consumers from unlawful financial services practices.
The justices will hear a Biden administration appeal contesting a lower court ruling last year that said the mechanism allowing the Consumer Financial Protection Bureau to be funded directly by the Federal Reserve is unconstitutional.
The challengers, two trade groups representing lenders, argue that the agency must be funded with appropriations approved by Congress.
Although the Biden administration had asked the court to fast-track the case, it will be decided in the court's next term, which starts in October and ends in June 2024.
The bureau, which enforces consumer protection laws on issues like mortgages, credit cards and students loans, was set up as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The funding structure was designed to protect it from political influence, with Republicans adamantly opposed to its creation.
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