Supreme Court May Use 'Bulldozer' to Further Limit Consumer Watchdog's Power

The Supreme Court previously ruled against the CFPB's leadership structure but allowed the agency to continue operating. Now the court may use a "bulldozer" to limit the CFPB's power.
The court has recently moved to limit regulatory power on issues like carbon emissions, COVID rules, and student loan forgiveness. More anti-regulatory cases are coming.
This case challenges the CFPB's funding method, which could undo over a decade of the agency's actions if found unconstitutional.
The conservative justices believe regulatory agencies undermine democracy; liberals say expertise is needed to address modern problems.
Justice Thomas has faced scrutiny for participating in cases tied to Koch-affiliated groups trying to limit agency power, though he has declined to comment.

cnn.com

Relevant topic timeline:

8/28/2023

CFPB Reaches Multibillion Dollar Settlement with Credit Repair Conglomerate

The Consumer Financial Protection Bureau (CFPB) has proposed a settlement with credit repair companies Lexington Law and CreditRepair.com, imposing a $2.7 billion judgment and a 10-year ban on telemarketing credit repair services due to illegal collection of advance fees in violation of federal law.

9/11/2023

CFPB Suffers Legal Defeat on Anti-Discrimination Authority

A federal judge ruled that the U.S. Consumer Financial Protection Bureau (CFPB) does not have broad authority to address discriminatory banking practices, favoring financial industry groups that sued the regulator.

9/14/2023

CFPB: College Tuition Payment Plans Can Confuse and Endanger Student Borrowers

The Consumer Financial Protection Bureau (CFPB) has issued a report revealing that students who enter into agreements with colleges to spread tuition costs may face risks such as high fees, coercive debt collection practices, and unclear disclosures.

9/21/2023

CFPB Proposes Removing Medical Debt from Credit Reports to Aid Families

The Consumer Financial Protection Bureau (CFPB) is beginning a rulemaking process to remove medical bills from Americans' credit reports in order to help families recover financially from medical crises, prevent debt collectors from pressuring individuals to pay bills they may not owe, and address the inaccuracies and mistakes in medical billing data.

10/2/2023

Supreme Court to Hear Case Challenging Funding and Independence of Consumer Watchdog Agency

The Supreme Court is set to determine the constitutionality of the Consumer Financial Protection Bureau's funding structure, which could have significant implications for the agency's future and its actions since it was established in 2010.

10/3/2023

Supreme Court Unlikely to Strike Down Consumer Agency, Avoiding Economic Chaos

The Supreme Court appears unlikely to strike down the Consumer Financial Protection Bureau (CFPB), despite arguments from former Trump Solicitor General Noel Francisco that the agency is unconstitutional; a decision against the CFPB could have severe economic consequences and undermine other federal programs.

10/6/2023

Supreme Court Case Could Upend Consumer Watchdog Agency Created by Elizabeth Warren

Senator Elizabeth Warren defends the existence of the Consumer Financial Protection Bureau (CFPB) in a Supreme Court case, highlighting its role in protecting consumers and providing transparency in the marketplace.

10/6/2023

CFPB Chief Warns Overturning Agency's Funding Could Hurt Consumers; Eyes Tech Firms' Payments

Consumer Financial Protection Bureau Director Rohit Chopra expresses concern that if the Supreme Court invalidates the agency's funding structure, it would create uncertainty for the mortgage industry and cause difficulties for consumers, while also warning that the US payment system is moving towards a Chinese-style system that blurs the lines between banking, money, and payments.

10/10/2023

CFPB Sues Freedom Mortgage for Providing False Data and Violating Prior Order

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Freedom Mortgage Corporation for providing false data on its mortgage operations in violation of a law enforcement order, highlighting the agency's commitment to ending misconduct in the financial industry.

10/19/2023

Business Groups Oppose CFPB Plan to Cut Credit Card Late Fee Limit

A coalition of groups is urging the Biden administration to withdraw a new rule proposed by the Consumer Financial Protection Bureau (CFPB) that would lower the cap on credit card late fees, arguing that it will harm consumers and economic growth. The groups claim that the rule will lead to higher costs for responsible consumers and reduce credit access for low-income workers.

10/19/2023

CFPB Proposes Open Banking Rule to Empower Consumers, Increase Competition

The Consumer Financial Protection Bureau (CFPB) has proposed a rule to accelerate open banking, granting consumers control over their financial data and protection against misuse, allowing them to switch to better financial products and services.

Topics

Posted 10/3/2023, 10:00:00 AM

Supreme Court May Use 'Bulldozer' to Further Limit Consumer Watchdog's Power

The Supreme Court previously ruled against the CFPB's leadership structure but allowed the agency to continue operating. Now the court may use a "bulldozer" to limit the CFPB's power.
The court has recently moved to limit regulatory power on issues like carbon emissions, COVID rules, and student loan forgiveness. More anti-regulatory cases are coming.
This case challenges the CFPB's funding method, which could undo over a decade of the agency's actions if found unconstitutional.
The conservative justices believe regulatory agencies undermine democracy; liberals say expertise is needed to address modern problems.
Justice Thomas has faced scrutiny for participating in cases tied to Koch-affiliated groups trying to limit agency power, though he has declined to comment.