FOR IMMEDIATE RELEASE
March 23, 2023
William Pierre-Louis, Jr.
Second Circuit Court Affirms CFPB Constitutionality
Washington, D.C. – The Second Circuit Court of Appeals today unanimously declared the funding structure of the Consumer Financial Protection Bureau (CFPB) is constitutional, rejecting the Fifth Circuit Court’s ruling in CFPB v. CFSA and writing that it “cannot find any support” for the Fifth Circuit’s ruling in Supreme Court precedent.
“The Second Circuit Court is absolutely right: the CFPB was authorized by Congress as part of Dodd-Frank and is constitutional,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform. “Now, the Supreme Court needs to align with the Second Circuit to reinforce stability within the country’s financial system while ending the industry’s persistent attack against the CFPB’s critical work to protect consumers.”
The Supreme Court has said it will review the Fifth Circuit Court’s ruling in CFPB v. CFSA in its next session.