Supreme Court Rejects Payday Lender Effort To Gut The Consumer Financial Protection Bureau

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Supreme Court News

Consumer Protection,Payday Loans

Paul Blumenthal is a senior reporter with the HuffPost Politics team based in Washington, D.C. He covers courts, elections, political economy and political history.

The Consumer Financial Protection Bureau’s funding mechanism is not unconstitutional, the U.S. Supreme Court ruled on Thursday.

In the suit, the payday lenders argued that this funding mechanism violated Article I, Section 9 of the Constitution, also known as the Appropriations Clause, which states that “o money shall be withdrawn from the Treasury, but in Consequence of Appropriations made by Law,” and that the mechanism wrongfully gave the agency “perpetual” funding.

Arguments before the court in October presaged a loss for payday lenders as two conservative justices joined the three liberals in expressing skepticism about their case. This opposition proved too much for the payday lenders in their effort to gut the CFPB. While the agency continues on, this is not the last legal challenge it will face from determined industry foes.The Future Of Democracy Is At StakeAs Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters.

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