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ACA International Responds to Court Decision on CFPB Funding Structure

ACA International logoACA has long advocated for the bureau’s funding to be through the congressional appropriations process.

10/20/2022 2:45 P.M.

1.5 minute read

The Consumer Financial Protection Bureau’s funding structure through the Federal Reserve was found unconstitutional Wednesday by the U.S. Court of Appeals for the 5th Circuit.

ACA International has long advocated for the bureau’s funding to be through the congressional appropriations process.

“Congress’s ability to have control over the purse strings of a federal agency is an essential feature of our constitutional structure that ensures democratic oversight of otherwise unaccountable agencies,” said Leah Dempsey, shareholder at Brownstein Hyatt Farber Schreck and ACA’s lobbyist. “The CFPB, particularly in recent months when it has refused to engage in transparent policymaking that takes into account any views other than a handful of people in Washington, D.C., has been a case study demonstrating why the lack of accountability surrounding this agency does not work, and was not contemplated in the constitution.”

In designing the CFPB, Congress took unprecedented steps to insulate the bureau against control by the elected branches, Dempsey said.

“The congressional appropriations process was contemplated to create a strong balance of all stakeholders,” said ACA CEO Scott Purcell. “Our advocacy focuses on having a seat at the table, and the CFPB of late has not involved all relevant parties in its decision making nor relied on accurate, current data to support its consumer protection initiatives and regulations. As a result, these initiatives can harm the consumers the bureau was founded to protect. If the congressional appropriations process is required for bureau funding, it will be one step to mitigate the bureau’s actions that appear to be outside the scope of its mission.”

ACA International (ACA), the association of credit and collection professionals, is the largest membership organization in the credit and collection industry. Founded in 1939, ACA brings together third-party collection agencies, law firms, asset buying companies, creditors and vendor affiliates, representing tens of thousands of industry professionals. ACA produces a wide variety of products, services and publications, including educational and compliance-related information; and articulates the value of the credit and collection industry to businesses, policymakers and consumers. www.acainternational.org.

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