Consumer Groups Highlight Importance of Strong Federal Watchdog

Advocates urge Supreme Court to uphold funding for Consumer Financial Protection Bureau

A collection of consumer advocacy groups is calling on the U.S. Supreme Court to uphold the current funding structure of the key federal watchdog agency in the consumer finance marketplace. The groups, including Consumer Federation of America (CFA) and the Center for Responsible Lending (CRL) are highlighting the work of the CFPB while also pointing to broad implications if the funding structure is overturned.

“By highlighting the long history of Congressional flexibility to adopt different agency funding mechanisms, the Solicitor General confirms that the 5th Circuit’s ruling was both unprecedented and radical,” said Rachel Gittleman, Financial Services Outreach Manager with Consumer Federation of America. “Like many other agencies and programs throughout our federal government, Congress provided the CFPB with a consistent funding stream and sufficient independence to safeguard its ability to ensure the financial marketplace is equitable, fair, transparent, and competitive for all American consumers. The Supreme Court should reject and reverse the 5th Circuit decision for the sake of consumers and the economy.”

Another group noted that not only does the decision have implications for consumer protection, but it also could impact other federal agencies.

"The stakes are high for Americans of all stripes," said Nadine Chabrier, Senior Counsel for Policy and Litigation at the Center for Responsible Lending. "People regularly interact with federal agencies that receive funding from outside the annual congressional appropriations process. This includes: a senior citizen who uses Medicare to cover hip replacement surgery; a rancher buying cattle with loans backed by the Farm Credit Administration; a child mailing her grandfather a birthday card; a widow receiving a monthly Social Security check; and a military servicemember getting reimbursed after the CFPB proves a lender overcharged them. All of these government services, and many more, are imperiled by this lawsuit."

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