CU Groups Ask SCOTUS To Declare CFPB Unconstitutional
CUNA and NAFCU filed a joint brief in the U.S. Supreme Court Monday supporting an issue raised by payday lenders that would force Congress to abandon the CFPB’s independent funding if the agency is to survive.
The brief, which also included the National Association of Credit Union Leagues, supports the payday lenders’ argument that Congress violated the Constitution when it passed the law in 2010 that created independent funding for the CFPB.
Congress also established independent funding for other federal agencies, including the FDIC, NCUA and Federal Reserve. But the payday lenders said the CFPB was uniquely unconstitutional because its funding comes through the Federal Reserve, making it “double insulated” from Congress. Because of that violation of the constitution, it argued the payday lending rule was invalid. Continue Reading…
