Today, the National Association of Federally-Insured Credit Unions (NAFCU) and the Credit Union National Association (CUNA), along with the American Association of Credit Union Leagues (AACUL), filed a joint amicus brief to the U.S. Supreme Court challenging the constitutionality of the CFPB's funding structure.
“For well over a decade, NAFCU has fought against the overly burdensome regulations from the CFPB on behalf of the 137 million people who rely on credit unions for their financial service needs,” said NAFCU President & CEO Dan Berger. “We have seen the agency wage a war on Main Street and impose rules that do more harm than good. It’s well past time to get them in check and give the CFPB long needed congressional oversight. I look forward to the Court hearing this critical case.”
“The broad power that the CFPB wields over financial products affecting every consumer makes it vitally important that the bureau operate with maximum transparency and accountability,” said CUNA President/CEO Jim Nussle. “Its current structure brings it under less oversight than any other federal financial regulator. As addressed in our amicus brief, we hope the court’s decision addresses the clear constitutional issues in the current structure, while minimizing disruptions to the financial services marketplace.”
In the brief, NAFCU, CUNA and AACUL ask the Supreme Court to affirm the lower court’s decision but issue a stay to give Congress time to act and fix the funding issue. The associations are also asking for a rulemaking pause during the stay.
The CFPB has the broadest regulatory reach of any financial agency – overseeing bank and nonbank “covered” financial services providers, and institutions both large and small – and the least amount of congressional oversight compared to other federal financial regulatory agencies.
NAFCU and CUNA will continue to monitor the case as the Supreme Court reconvenes in the fall.