Today, AFSA, with several other trade associations, submitted an amicus brief to the U.S. Supreme Court in Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America (CFSA).
The brief argues in favor of CFSA, noting that the CFPB’s funding structure, which is free from congressional oversight and budgetary process, is unconstitutional.
The case began in October 2017 with a challenge to a rule governing the payday lending industry that barred lenders from seeking additional payments from borrowers’ bank accounts after two consecutive failed attempts. CFPB v. CFSA challenges the Bureau’s authority to make such a rule by calling into question the constitutionality of the Bureau’s unique, “double insulated” funding process.
A federal appeals court ruled in October that the funding mechanism for the CFPB violates the Constitution. The Biden administration, sought an opinion from the Supreme Court, noting that allowing the lower court’s decision to stand could raise “grave concerns” for “the entire financial industry.”
The amicus argues that the Bureau enjoys a unique funding structure, separate from the congressional budget process, noting that while other agencies draw funding from other entities (Office of the Comptroller of the Currency, Federal Deposit Insurance Commission), none combine that autonomy with the vast, sweeping authority given to the Bureau. Agencies that are market regulators and thus easy comparisons to the Bureau, like the Federal Trade Commission, which shares some regulatory responsibility with the CFPB, are funded by Congress and accountable to the people. The Bureau, on the other hand, is a legislature, prosecutor and court.
The amicus suggests that the Court sever the funding mechanism and stay that decision until Congress has time “to authorize temporary funding or fix the constitutional defect.”
The case is likely to be argued this Fall with a decision coming next summer.
Today, AFSA, with several other trade associations, submitted an amicus brief to the U.S. Supreme Court in Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America (CFSA).
The brief argues in … Read the rest
This spring, the Consumer Financial Protection Bureau (CFPB) released a proposed Statement of Policy Regarding Prohibition on Abusive Acts or Practices.
While the Statement is meant to produce “clearer and simpler guidance,” it instead… Read the rest
Last week, AFSA’s SGA team published it’s July white paper looking at retail bad debt.
Under retail bad statutes, the financial institution is entitled to a tax credit or deduction for the amount of the sales tax remitted but unpaid… Read the rest
The featued Business Partner for the month of July is Hudson Cook.
Established in 1997, Hudson Cook, LLP focuses its practice on laws related to financial services, banking and information privacy. In addition to the regulatory compliance… Read the rest
AFSA member companies are generally very good at marketing their own products and services. What about your company? Are you telling prospective hires and current employees why they should work with you? Terri Horn, Managing Director with… Read the rest
Alfa, provider of Alfa Systems, the cloud-native technology platform at the heart of the world’s most progressive auto and equipment finance companies, has published a new paper on SaaS and cloud services.
Cloud Services: Finding Success… Read the rest
AFSA conferences are full of great sessions, but we have plenty of networking opportunities for attendees, too.
You can start your Annual Meeting week with the welcome reception on Monday, build some momentum on Tuesday morning running and… Read the rest
Last week, the House Armed Services Committee (HASC) passed the National Defense Authorization Act (NDAA) out of committee by a vote of 58-1. AFSA has long worked with both the House and Senate Armed Services Committees to ensure that harmful… Read the rest
AFSA sent a letter to Subcommittee on Financial Services and General Government Chair Steve Womack (R-AR) encouraging him to include language in the committee’s appropriations bill. The language would prevent the Federal Trade Commission… Read the rest
Join Yotam Haroosh, Director of Consumer Lending, Lightico, to gain insights into how to effectively streamline your originations processes to boost efficiency and accelerate time to funding. In this webinar, we’ll cover the latest… Read the rest
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