-------- Forwarded Message --------
This may not have made your local news last night, but American
consumers took what could be a major hit this week.
The Fifth Circuit Court of Appeals* ruled — wrongly — that the funding
structure of the Consumer Financial Protection Bureau is unconstitutional.
Some history:
* The Consumer Financial Protection Bureau (CFPB) was created as part
of the landmark /Dodd–Frank Wall Street Reform and Consumer
Protection Act/ of 2010 — after the Big Banks’ reckless greed
sparked the Great Recession.
* The agency was initially proposed by Elizabeth Warren, then a
Harvard professor and now a U.S. senator.
* Public Citizen was instrumental in pushing for the creation of the
CFPB.
* That included an insistence that the agency be funded independently
of Congress’ annual appropriations circus — which is far too
susceptible to lobbying and campaign cash from Wall Street and other
deep-pocketed financial enterprises.
* Congress agreed, and intentionally set up the CFPB to be funded
through the Federal Reserve, rather than via annual congressional
appropriations.
* And for over a decade, the CFPB has been working exactly as intended
— recovering billions for everyday American consumers and
restricting some of the worst impulses of financial companies.
* But then a trade group for predatory payday lenders came along and
challenged the very structure of the CFPB — even though that
structure is intentional and was approved by a majority in both the
House and Senate when the agency was created in the first place.
*Public Citizen issued this statement last night:*
/The Fifth Circuit’s dangerously misguided and outrageous decision
jeopardizes the most important consumer protection agency created in the
last 50 years along with the rules, guidelines, enforcement actions, and
consumer education that the Consumer Financial Protection Bureau has
issued and undertaken.
The decision ignores long-established and long-accepted practice of
funding financial regulatory agencies, and the prior review of many
other courts, in order to decree that the funding mechanism of the CFPB
is unconstitutional. If upheld, this decision is a gift to scammers and
rip-off artists, payday lenders and Big Banks.
If it stands, it will go down as one of the most anti-consumer court
rulings in history. It must be reversed./
*Click now to add your name as a citizen co-signer of our official
statement addressing the Fifth Circuit’s absurd ruling.
<https://publiccitizen.salsalabs.org/fifth-circuit-ruling-on-consumer-financial-protection-bureau/index.html>
Thanks for taking action.
For progress,
- Robert Weissman, President of Public Citizen
*Our judicial system has 11 circuit courts. Each one covers several
states. Collectively, they are the next level below the United States
Supreme Court, the highest court in the land.
Public Citizen | 1600 20th Street NW | Washington DC 20009
