Will other CFPB cases be argued after supreme court decision on funding?
Judges issued injunctions blocking CFPB rules to wait on the Supreme Court
Now that the Supreme Court has upheld the Consumer Financial Protection Bureau’s funding mechanism as constitutional, the fate of the agency’s credit card late fee rule and the small business reporting rule could soon be decided.
Federal judges in Texas and Kentucky have issued injunctions blocking implementation of a rule that would require many credit unions and banks to report to federal agencies about their lending activity to women-owned and minority-owned companies. Both judges cited the uncertainty surrounding the Supreme Court decision in issuing the injunctions.
In a separate case, a Texas federal judge has issued an injunction blocking implementation of a final rule lowering most credit card late fees to $8. That judge, Mark Pittman of the U.S. District Court for the Northern District of Texas, cited the pending Supreme Court decision in issuing an injunction blocking the rule, which was scheduled to go into effect on Tuesday.
On Thursday, the Supreme Court on a vote of 7-2, overruled the Fifth Circuit’s decision and upheld the CFPB’s funding mechanism, saying it did not violate the Constitution’s appropriations clause.
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