What Banking Leaders Need to Know About the U.S. Supreme Court Ruling That the CFPBs Funding Mechanism is Constitutional Part I
On May 16, 2024, the U.S. Supreme Court ruled that the CFPB\u2019s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution. This two-part episode repurposes a recent webinar. In Part I, we first discuss the SCOTUS decision, the status of the CFPB\u2019s payday lending rule that was at issue in the underlying case, and a potential new challenge to the CFPB\u2019s funding that has been the focus of recent attention. We then discuss four cases still pending before SCOTUS in which the decisions could impact the CFPB. Next, we discuss the pending lawsuits challenging the CFPB\u2019s final rules on credit card late fees and small business data collection and the changes to the CFPB\u2019s UDAAP exam manual defining \u201cunfairness\u201d to include discrimination, including the background of those cases, their current status, and the non-constitutional legal challenges made by the plaintiffs in those cases. We conclude with a discussion of final and proposed CFPB rules expected to be issued soon and potential non-constitutional legal challenges to those rules.
Alan Kaplinsky, Senior Counsel in Ballard Spahr\u2019s Consumer Financial Services Group, moderates the discussion joined by John Culhane, Richard Andreano, and Joseph Schuster, Partners in the Group, and Kristen Larson, Of Counsel in the Group.