CFPB structure unconstitutional?

[NoMoreE46]

NPR.org article 

https://www.npr.org/2022/10/19/1130115943/court-says-financial-watchdog-agency-cfpbs-structure-is-un...

[edited title CFFB to CFPB.]

[SweetCreditObsession]

Thank you for posting this.

Let's hope these actions don't result in us losing the gains in protections we've enjoyed as consumers.

[Anonymalous]

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@SweetCreditObsession wrote:

Thank you for posting this.

Let's hope these actions don't result in us losing the gains in protections we've enjoyed as consumers.

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I'm not really sure what the CFPB has done. Most of the protections I'm familiar with come from unrelated legislation, like the FCRA.

Though the most interesting part of the ruling is the same logic can apply to the Federal Reserve or the FDIC. I don't expect the ruling will be upheld, but that has nothing to do with the actual merits of the argument, and everything to do with the reluctance of the courts to overturn long-standing precedents.

[crystal626]

This is a catastrophic failure. If it's allowed to stand, the CFPB will either be shuttered or will be subject to political whims when deciding policy. 

As for what have they done? They sure seem quite useful. 

https://www.consumerfinance.gov/about-us/blog/celebrating-10-years-consumer-protection/

They are the quickest avenue to a resolution of an issue between a creditor and a consumer. The fact that this lawsuit was brought by a group that has been targeted by the CFPB for the way they fleece the public tells you everything you need to know about how much of a thorn in the side they have been. 

[805orbust]

Never knew they were funded by the Federal Reserve... 🤮

[pizzadude]

I'd expect it will be business as usual at the CFPB, this case will likely continue to bounce around the legal system for years.

There are quite a few other articles in the news discussing this decision, many of which are wading into the political arena so I won't post them, but it'll be surprising to me if this decision stands once all the smoke clears.