UnidosUS: Supreme Court Victory in Consumer Financial Protection Bureau Challenge Is a Win for Millions of Consumers

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Washington, DC – In a 7-2 ruling, the Supreme Court held today that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is constitutional based on the history and context of the Appropriations clause.

Laura MacCleery, Senior Policy Director for UnidosUS, released the following statement:

“The CFPB was created following the financial crisis that hurt so many Latino consumers and communities of color. Today, it ensures there are fair rules of the road for financial products. The Bureau’s work forms a strong national foundation for business and generates consumer confidence and trust in the safety of transactions and contracts. The CFPB also helps enforce some of the nation’s most important and practical civil rights laws. The Supreme Court’s decision means that the CFPB can continue this important work, and that businesses large and small and millions of consumers will not face costly disruptions from the chaos an adverse decision would have caused.

“It is also a victory for common sense and a plain reading of the Constitution. Congress can and does use lots of ways to fund federal agencies, including the Federal Reserve. Financial regulators are generally funded this way because it assures critical continuity and keeps our economy stable.

“Before the Fifth Circuit ruling in this case, no other court had ever held that Congress violated the Appropriations Clause by enacting a statute authorizing spending. We’re glad to see the Supreme Court soundly reject that illogical and dangerous decision.”

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