CFPB: Funding is neither unique nor unconstitutional

by David Baumann, CUCollaborate

There is absolutely nothing unique or unconstitutional about the way the CFPB is funded, the agency told a federal court this week.

In documents filed in the U.S. District Court for the Northern District of Illinois, the agency contends that the Fifth Circuit Court of Appeals was incorrect in deciding that CFPB funding is illegal since it does not go through the appropriations process.

“Although the Fifth Circuit described the Bureau’s funding as ‘novel’ and ‘unprecedented,’ the Bureau is not meaningfully different from countless other agencies and programs that are funded in ways other than annual spending bills,” the CFPB told the Illinois federal court.

Several Cases Being Questioned

The agency was responding to a request by TransUnion to dismiss a suit filed by the CFPB contending that the company had violated a 2017 consent order concerning its marketing of credit-related products.

 

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