A Nevada federal district court has stayed an action filed by the CFPB to enforce a civil investigative demand (CID) issued to a small-dollar lender pending the U.S. Supreme Court’s decision in Community Financial Services Association of America Ltd. v. CFPB.  The issue in CFSA  v. CFPB is whether the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

On October 3, 2023, the U.S. Supreme Court held oral argument in CFSA v. CFPB, a case with profound potential implications for the future of the CFPB.  The Court will rule on whether the CFPB’s funding mechanism violates the U.S. Constitution’s Appropriations Clause and, if so, what the appropriate remedy should be. … Continue Reading

The Texas federal district court hearing the lawsuit challenging the validity of the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act (Rule) has issued an order that preliminarily enjoins the CFPB from implementing and enforcing the Rule on a nationwide basis against all entities covered by the Rule.  On July 31, the court had denied the request of the plaintiffs in the lawsuit for nationwide preliminary relief and instead issued an order that granted preliminary relief only to the plaintiffs and their members. … Continue Reading

On October 3, 2023, the U.S. Supreme Court heard oral argument in CFSA v. CFPB, a case with profound potential implications for the future of the CFPB.  The Court will rule on whether the CFPB’s funding mechanism violates the U.S. Constitution’s Appropriations Clause and, if so, what the appropriate remedy should be. … Continue Reading

Yesterday morning, the U.S. Supreme Court held oral argument in Community Financial Services Association of America Ltd. v. Consumer Financial Protection Bureau, a case we have been following closely on Consumer Finance Monitor because of its profound potential implications for the future of the CFPB.  In the case, the Court will rule on whether the CFPB’s funding mechanism violates the U.S.… Continue Reading

Tomorrow, the U.S. Supreme Court will hear oral argument in CFPB v. CFSA, in which the question presented is whether the CFPB’s funding mechanism violates the Appropriations Clause of the U.S. Constitution.

In an article requested by and published today in American Banker’s BankThink, Alan Kaplinsky, Senior Counsel (and former practice group leader) in Ballard Spahr’s Consumer Financial Services Group, argues that the Supreme Court should rule that the CFPB’s funding mechanism is unconstitutional. … Continue Reading

The U.S. Supreme Court will hold oral argument on October 3, 2023 in Community Financial Services Association of America Ltd. v. Consumer Financial Protection Bureau, a case we have been following closely on Consumer Finance Monitor because of its profound potential implications for the future of the CFPB.  In the case, the Court will rule on whether the CFPB’s funding mechanism violates the U.S.… Continue Reading

The U.S. Supreme Court has denied the motion filed by the 27 Republican State Attorney Generals who filed an amicus brief in support of Community Financial Services Association in CFSA v. CFPB asking for leave to participate in oral argument.  No explanation for the denial was given by the Court.  While the Supreme Court almost routinely grants requests by the Solicitor General to participate in oral argument as amicus, it grants requests from State Attorneys General to argue as amici with much less frequency.… Continue Reading

The CFPB has filed its reply brief with the U.S. Supreme Court in Community Financial Services Association of America Ltd. v. CFPB.  In the case, CFSA has asked the Supreme Court to affirm the Fifth Circuit panel’s decision which held that the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

The U.S. Supreme Court has scheduled oral argument on October 3, 2023 in Community Financial Services Association of America Ltd. v. CFPB.  In the case, CFSA has asked the Supreme Court to affirm the Fifth Circuit panel’s decision which held that the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading