SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Sen. Elizabeth Warren (D-Mass.) speaks during a protest in front of the Consumer Financial Protection Bureau (CFPB) headquarters on November 28, 2017 in Washington, D.C.
(Photo: Mark Wilson/Getty Images)
Consumer Advocates Applaud as Federal Court 'Yet Again' Finds CFPB's Funding Constitutional
"If the Supreme Court follows suit," said one watchdog, "it will mark a major win for everyday consumers impacted by abusive fees, predatory lenders, and corporate greed."
Mar 23, 2023
U.S. Sen. Elizabeth Warren, who established the Consumer Financial Protection Bureau in 2010, was among the consumer advocates celebrating on Thursday as a federal court in New York City ruled that the bureau's funding structure is constitutional—rebuking years of right-wing and corporate attacks on the agency.
The Massachusetts Democrat expressed hope that the U.S. Supreme Court, which is expected to hear arguments in a separate but related case later this year, "follows more than a century of law and historical precedent" and also rules in favor of the CFPB, which has regulated debt collectors, payday lenders, credit card companies, and other financial businesses for more than a decade.
"Yet again, the constitutionality of the CFPB has been upheld, as it has been time and time before," said Warren.
The 2nd U.S. Circuit Court of Appeals ruled in favor of the bureau Thursday in a case stemming from a debt collector's attempt to avoid a subpoena from the CFPB in 2017.
A lower court ruled in the case in August 2020 that the bureau's funding structure is constitutional, but the 5th U.S. Circuit Court of Appeals in New Orleans said last year in the case set to be heard by the Supreme Court that the funding violates the Constitution's appropriations clause and the separation of executive and legislative powers.
The CFPB is funded by the Federal Reserve rather than through appropriations voted on annually by lawmakers.
Writing for the three-judge 2nd Circuit panel that voted unanimously in favor of the bureau, Judge Richard Sullivan noted that the justice system "has consistently interpreted the appropriations clause to mean simply that 'the payment of money from the Treasury must be authorized by a statute,'"—which doesn't apply to the CFPB since it receives no funding from the U.S. Treasury Department.
An upcoming ruling by the Supreme Court that supports the 2nd Circuit's finding would "mark a major win for everyday consumers impacted by abusive fees, predatory lenders, and corporate greed," said government watchdog Accountable.US.
"The CFPB is a vital voice for consumers and protects Americans from unfair and abusive practices," said Rep. Nydia Velázquez (D-N.Y.). "We can't allow these protections to be weakened."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
cfpbelizabeth warrenfederal reservenydia velazquezaccountable.usconstitutionu.s. supreme courtconsumer financial protection bureau
U.S. Sen. Elizabeth Warren, who established the Consumer Financial Protection Bureau in 2010, was among the consumer advocates celebrating on Thursday as a federal court in New York City ruled that the bureau's funding structure is constitutional—rebuking years of right-wing and corporate attacks on the agency.
The Massachusetts Democrat expressed hope that the U.S. Supreme Court, which is expected to hear arguments in a separate but related case later this year, "follows more than a century of law and historical precedent" and also rules in favor of the CFPB, which has regulated debt collectors, payday lenders, credit card companies, and other financial businesses for more than a decade.
"Yet again, the constitutionality of the CFPB has been upheld, as it has been time and time before," said Warren.
The 2nd U.S. Circuit Court of Appeals ruled in favor of the bureau Thursday in a case stemming from a debt collector's attempt to avoid a subpoena from the CFPB in 2017.
A lower court ruled in the case in August 2020 that the bureau's funding structure is constitutional, but the 5th U.S. Circuit Court of Appeals in New Orleans said last year in the case set to be heard by the Supreme Court that the funding violates the Constitution's appropriations clause and the separation of executive and legislative powers.
The CFPB is funded by the Federal Reserve rather than through appropriations voted on annually by lawmakers.
Writing for the three-judge 2nd Circuit panel that voted unanimously in favor of the bureau, Judge Richard Sullivan noted that the justice system "has consistently interpreted the appropriations clause to mean simply that 'the payment of money from the Treasury must be authorized by a statute,'"—which doesn't apply to the CFPB since it receives no funding from the U.S. Treasury Department.
An upcoming ruling by the Supreme Court that supports the 2nd Circuit's finding would "mark a major win for everyday consumers impacted by abusive fees, predatory lenders, and corporate greed," said government watchdog Accountable.US.
"The CFPB is a vital voice for consumers and protects Americans from unfair and abusive practices," said Rep. Nydia Velázquez (D-N.Y.). "We can't allow these protections to be weakened."
From Your Site Articles
- Judge Who Ruled Against CFPB Took Thousands in Wall Street Campaign Cash: Watchdog ›
- 'Lawless and Reckless': Warren Condemns Fifth Circuit Attack on CFPB ›
- Supreme Court to Review Constitutionality of CFPB’s Funding ›
- 'Shameless Corporate Shill' Mick Mulvaney Tells SCOTUS to Destroy Agency Trump Let Him Lead ›
Related Articles Around the Web
U.S. Sen. Elizabeth Warren, who established the Consumer Financial Protection Bureau in 2010, was among the consumer advocates celebrating on Thursday as a federal court in New York City ruled that the bureau's funding structure is constitutional—rebuking years of right-wing and corporate attacks on the agency.
The Massachusetts Democrat expressed hope that the U.S. Supreme Court, which is expected to hear arguments in a separate but related case later this year, "follows more than a century of law and historical precedent" and also rules in favor of the CFPB, which has regulated debt collectors, payday lenders, credit card companies, and other financial businesses for more than a decade.
"Yet again, the constitutionality of the CFPB has been upheld, as it has been time and time before," said Warren.
The 2nd U.S. Circuit Court of Appeals ruled in favor of the bureau Thursday in a case stemming from a debt collector's attempt to avoid a subpoena from the CFPB in 2017.
A lower court ruled in the case in August 2020 that the bureau's funding structure is constitutional, but the 5th U.S. Circuit Court of Appeals in New Orleans said last year in the case set to be heard by the Supreme Court that the funding violates the Constitution's appropriations clause and the separation of executive and legislative powers.
The CFPB is funded by the Federal Reserve rather than through appropriations voted on annually by lawmakers.
Writing for the three-judge 2nd Circuit panel that voted unanimously in favor of the bureau, Judge Richard Sullivan noted that the justice system "has consistently interpreted the appropriations clause to mean simply that 'the payment of money from the Treasury must be authorized by a statute,'"—which doesn't apply to the CFPB since it receives no funding from the U.S. Treasury Department.
An upcoming ruling by the Supreme Court that supports the 2nd Circuit's finding would "mark a major win for everyday consumers impacted by abusive fees, predatory lenders, and corporate greed," said government watchdog Accountable.US.
"The CFPB is a vital voice for consumers and protects Americans from unfair and abusive practices," said Rep. Nydia Velázquez (D-N.Y.). "We can't allow these protections to be weakened."
From Your Site Articles
- Judge Who Ruled Against CFPB Took Thousands in Wall Street Campaign Cash: Watchdog ›
- 'Lawless and Reckless': Warren Condemns Fifth Circuit Attack on CFPB ›
- Supreme Court to Review Constitutionality of CFPB’s Funding ›
- 'Shameless Corporate Shill' Mick Mulvaney Tells SCOTUS to Destroy Agency Trump Let Him Lead ›
Related Articles Around the Web
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.