On May 16, 2024, the U.S. Supreme Court ruled in Community Financial Services Association of America Ltd. v. Consumer Financial Protection Bureau that the CFPB’s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution.  The Supreme Court’s decision has far-ranging implications, most immediately for cases involving challenges to CFPB regulations or other CFPB actions.  Such cases include CFSA itself in which the Fifth Circuit invalidated the CFPB’s payday lending rule based on its conclusion that the CFPB’s funding is unconstitutional and the lawsuit challenging the CFPB’s credit card late fee rule in which the district court relied on the Fifth Circuit’s decision in CFSA to enter a preliminary injunction staying the late fee rule.

On May 30, 2024, from 12:00 p.m. to 1:30 p.m. ET, we will hold a webinar, “Supreme Court: CFPB Funding Mechanism is Constitutional. What Do Banking Leaders Need to Know?,” in which our topics will include the remaining cases pending before SCOTUS which could impact the CFPB, final regulations subject to court challenge, and final and proposed regulations to be issued soon and potential legal challenges.  For more information and to register, click here.