Press Release

Authorities on CFPB to Discuss Agency's Ongoing Challenges in Wake of Supreme Court

June 1, 2024

WHAT: The Supreme Court’s May 16 decision in Community Financial Services Association of America v. Consumer Financial Protection Bureau established that the funding mechanism for the CFPB is constitutional. In doing so, it laid to rest one major question as to the agency’s legitimacy—but left unresolved several others.

WHO: Harvard Law School Professor Emeritus Hal S. Scott, the author of the recent Wall Street Journal op-ed “The CFPB’s Pyrrhic Victory in the Supreme Court,” will join Alan Kaplinsky on Ballard Spahr’s Consumer Finance Monitor podcast for an episode to be released June 6. Mr. Kaplinsky, the former longtime leader of the firm’s Consumer Financial Services Group, is a nationally sought-after source for issues related to the CFPB.

In this forthcoming podcast episode, Professor Scott and Mr. Kaplinsky will explore other challenges to the CFPB’s existence and authority to continue operating, including:

  • Whether funding the CFPB with draws from the Federal Reserve System’s “earnings” violates the Dodd-Frank Act
  • Whether the Federal Reserve System’s inability to turn a profit starting in September 2022 means any draws to fund the CFPB thereafter were unlawful—and, if so, what that means for any rules and regulations promulgated after that date.
  • How else the existence and enforcement authority of the CFPB might be challenged in litigation.

WHEN: The podcast episode will be released on June 6 and can be accessed on the Consumer Finance Monitor webpage. Mr. Kaplinsky also is available for media interviews.

ABOUT BALLARD SPAHR'S CONSUMER FINANCIAL SERVICES GROUP: The attorneys in Ballard Spahr’s Consumer Financial Services Group—more than 70 in offices across the country—advise on regulatory matters, assist in the design and documentation of credit products, and represent clients in government regulatory enforcement proceedings, class actions, and other lawsuits nationwide. The Group’s regulatory lawyers and litigators work together to advise clients on CFPB matters, including CFPB rulemaking, preparing for CFPB exams, response to CFPB investigative demands, and litigation when appropriate. Chambers USA consistently ranks the Group in the highest tier nationally.

For media inquiries, please contact Will Ashenmacher at 612.371.5792.

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