Recorded Webinar

Supreme Court: CFPB Funding Mechanism is Constitutional. What Do Banking Leaders Need to Know?

Event Details
May 2024
11:00 AM - 12:30 PM CDT

On May 16, 2024, the U.S. Supreme Court ruled in Community Financial Services Association of America Ltd. v. Consumer Financial Protection Bureau that the CFPB’s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution. The Supreme Court’s decision has far-ranging implications, most immediately for cases involving challenges to CFPB regulations or other CFPB actions. Such cases include CFSA itself in which the Fifth Circuit invalidated the CFPB’s payday lending rule based on its conclusion that the CFPB’s funding is unconstitutional and the lawsuit challenging the CFPB’s credit card late fee rule in which the district court relied on the Fifth Circuit’s decision in CFSA to enter a preliminary injunction staying the late fee rule.

In this webinar, we will cover the following topics:

1. Brief discussion of the opinion and whether it is the end of existential challenges to CFPB in light of Professor Hal Scott’s op-ed in May 21 Wall Street Journal entitled “The Pyrrhic Victory of the CFPB in the Supreme Court”

2. Remaining cases in SCOTUS which could impact CFPB

  • SEC v. Jarkesy - challenge to appointment of administrative law judges
  • National Marine Fisheries Service Cases dealing with Chevron
  • Corner Post v. FRB. - Statute of limitations under APA

3. Final regulations subject to court challenges

  • Credit card late fees
  • Small business loans data collection
  • UDAAP Exam Manual amendment defining “unfairness” to include discrimination

4. Final and proposed regulations to be issued soon and potential legal challenges

  • Overdraft and NSF fees
  • Nonbank registry of form contracts with terms or conditions that seek to waive or limit consumer legal protections
  • Nonbank registry of consent orders and judgments
  • FCRA
  • Larger participant rule pertaining to payment providers
  • Open banking (data sharing)

5. Impact of Congressional Review Act on proposed regulations

6. Lifting of stays on pending enforcement lawsuits

7. Expected proliferation of new CFPB investigations and CFPB hiring binge

This program is approved for 1.5 CLE credit in CA, NV, NY, & PA; and 1.8 NJ. MN CLE credit is pending. Uniform Certificates of Attendance will also be provided for the purpose of seeking credit in other jurisdictions.

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