[ Article originally appeared in https://greenlining.org ]
The 7-2 ruling upholds the independence of the consumer watchdog agency which provides critical protections for consumers, including communities of color
The United States Supreme Court issued a resounding ruling in CFPB v. Community Financial Services Association of America, upholding the funding structure of the Consumer Financial Protection Bureau, and overturning a Fifth Circuit Court decision that threatened to undermine the independent agency.
After the 2008 financial crisis and the Great Recession that followed, the Obama administration enacted a series of financial reforms and regulations through the Dodd-Frank Wall Street Reform and Consumer Protection Act, formally establishing the CFPB to oversee Federal financial laws that protect consumers. The CFPB helps ensure the financial market is a level playing field by cracking down on bad financial actors that engage in unfair, deceptive, abusive, and discriminatory practices that harm consumers.
Statement from Debra Gore-Mann, President and CEO at The Greenlining Institute:
“This is a huge win—both for consumers and the integrity of our economic system. With this ruling, the Supreme Court preserves the Consumer Financial Protection Bureau’s ability to be funded independently of annual congressional appropriations. This funding structure was intentionally put in place so that our main consumer watchdog agency is empowered to protect consumers and hold the financial industry accountable. The CFPB simply cannot be effective if it is dependent on our volatile political system—one that is heavily influenced by well-funded special interest groups that prioritize industry profits over consumers.
Today’s ruling reinforces our collective fight for a fair and just economic system that enables equitable access to wealth and opportunity. Still, we have a long road ahead of us to ensure economic equity for communities of color and low-income communities that endure the lasting legacies of redlining and disinvestment.
While we celebrate this significant victory, challenges to the CFPB and its role in building a more just economy are increasing. Political and industry interests continue to launch attacks aimed at undermining the CFPB’s effectiveness and maintaining the status quo of economic inequity. We must remain vigilant in safeguarding the CFPB from these attacks so it can continue its crucial role in our economy.”
SOURCE: https://greenlining.org/2024/scotus-ruling-protects-the-cfpb/
