Supreme Court upholds funding structure for CFPB

The U.S. Supreme Court upheld the manner in which the Consumer Financial Protection Bureau is funded.

The opinion was written by Justice Clarence Thomas who reversed the decision of the Fifth Circuit. Justices Neil Gorsuch and Samuel Alito dissented.

Congress created the CFPB after the 2008 financial crash to protect consumers from what were seen as predatory and deceptive practices by financial institutions. Since then, the bureau has established consumer protections for transactions ranging from mortgages to credit cards. But payday lenders have, for years, fought regulations that would limit excessive fees charged on small loans of just a few hundred dollars – fees that often end up costing people thousands of dollars.


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