The Oct. 3 arguments will focus on a case challenging the constitutionality of the bureau’s funding structure.
07/17/2023 1:00 P.M.
1.5 minute read
The U.S. Supreme Court has announced its arguments (PDF) for the fall term, including the case that brings the Consumer Financial Protection Bureau’s constitutionality to the court for the second time in recent years.
The court will hold oral arguments in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited (CFSAA) Oct. 3.
ACA International filed its amicus brief in the case last week.
ACA’s brief (PDF) submitted by Brownstein Hyatt Farber Schreck, LLP, counsel Christopher Murray, supports CFSAA, which filed suit against the CFPB and Director Rohit Chopra challenging the bureau’s 2017 payday lending rule on the grounds the rule is not valid because the CFPB’s funding structure is unconstitutional.
The 5th Circuit Court of Appeals issued a ruling that the CFPB’s funding structure violates the appropriations clause in 2022. The CFPB appealed the decision, and its petition for the U.S. Supreme Court to review the case was granted, ACA previously reported.
The CFPB requested that the court address whether the 5th Circuit Court of Appeals erred in its ruling that the bureau’s funding structure through the Federal Reserve rather than the congressional appropriations process violates the U.S. Constitution’s separation of powers.
In the amicus brief, ACA argues that the Supreme Court should affirm the 5th Circuit’s decision on the CFPB’s funding structure but delay its judgment for six months to allow Congress time to consider options to reconstitute the bureau while minimizing disruptions for consumers and regulated entities.
The Supreme Court will hear six cases between Oct. 2 and Oct. 11. A decision in the CFPB case is expected to be issued between December 2023 and the end of June 2024.
Read more about ACA’s amicus brief here.