Search results for: cfsa constitutionality

Many people have asked me if the Second Circuit’s opinion in CFPB v. Law Offices of Crystal Moroney, which held that the CFPB’s funding does not violate the Appropriations Clause, changes my mind about how the Supreme Court will rule in CFSA v. CFPB.  It is noteworthy that two of the three judges on the Second Circuit panel were appointed by Republican Presidents, including one appointed by President Trump. … Continue Reading

Having granted the certiorari petition filed by the CFPB seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB, the U.S. Supreme Court has granted the parties’ joint request to extend the time to file the briefs on the merits.  The Fifth Circuit panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

Community Financial Services Association (CFSA) has filed its brief in opposition to the CFPB’s certiorari petition seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB.  In that decision, the panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

On August 7, 2024, the U.S. District Court for the Eastern District of Kentucky granted the CFPB’s motion to stay the small business lending rule litigation before the court until resolution of the similar case pending in the Southern District of Texas.

In 2023, a group of Kentucky banks and the Kentucky Bankers Association brought suit against the CFPB challenging the Small Business Lending Rule, which amends Regulation B and creates data collection and reporting requirements pertaining to credit extended to small businesses.… Continue Reading

We have previously blogged about an enforcement action brought on July 12, 2022 by the CFPB against Populus Financial Group, Inc., d/b/a ACE Cash Express, Inc. in Federal District Court for the Northern District of Texas (Judge James E. Kinkeade). CFPB alleges in its lawsuit that Populus engaged in unfair, deceptive, and abusive acts or practices by concealing the option of a free repayment plan to consumers and making unauthorized debit-card withdrawals.… Continue Reading

Part 1 – The CFPB has no authority to investigate or sue Acima because, under Dodd-Frank and the appropriations Clause of the Constitution, it may only be funded out of combined earnings of the Federal Reserve System and there are only combined losses beginning in September 2022.

In a race to the courthouse, the Consumer Financial Protection Bureau and a Lease-to-own (“LTO”) company sued each other last week, with the CFPB alleging the company engaged in illegal lending designed to evade consumer financial protection laws, and the company alleging that the Bureau pursued an illegal and unconstitutional investigation beyond its authority that seeks to usurp the state regulatory framework which recognizes that LTO transactions are different from credit transactions.… Continue Reading

After the Supreme Court’s long-awaited 7-2 decision in CFSA v. CFPB that the Consumer Financial Protection Bureau’s (“CFPB’s”) funding mechanism did not violate the appropriations clause of the U.S. Constitution, the case was remanded to the Fifth Circuit, which affirmed the judgment of the district court and reinstated its own judgment in favor of the CFPB on plaintiffs’ three other challenges to the Payday Lending Rule (the “Rule”) that the Fifth Circuit panel had previously rejected:

  1. That the payday lending rule’s promulgation violated the Administrative Procedure Act;
  2. That the rule was promulgated by a CFPB Director unconstitutionally insulated from presidential removal; and
  3. That the CFPB’s UDAAP rulemaking authority violates the Constitution’s separation of powers.
… Continue Reading

The CFPB (or “Bureau”) filed a cross-motion for summary judgment in the lawsuit regarding the small business lending data collection and reporting rule, also known as the 1071 rule based on the Dodd-Frank section that requires the CFPB to adopt the rule (the “Rule”). Last month, the plaintiffs and intervenors in the lawsuit challenging the Rule filed a consolidated motion for summary judgment.… Continue Reading

Just two days after the CFPB issued its final credit card late fee rule (Rule) last week, a lawsuit was filed in a Texas federal district court seeking to invalidate the Rule.  The plaintiffs in the lawsuit are the Chamber of Commerce of the United States of America, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business. … Continue Reading

The Federal Financial Institutions Examination Council (FFIEC) recently issued a statement of principles related to valuation discrimination and bias for member entities to consider in their consumer compliance and safety and soundness examinations. The member entities of the FFIEC are the Comptroller of the Currency, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration and the FFIEC State Liaison Committee.… Continue Reading