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In It to Win It

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Thu Mar 23, 2023, 12:19 PM Mar 2023

2nd Circuit: The funding structure of the CFPB is not unconstitutional

The Consumer Financial Protection Bureau’s independent funding through the Federal Reserve is constitutional, the Second Circuit ruled ahead of a US Supreme Court case challenging the agency’s funding.

The unanimous Thursday ruling from a three-judge panel of the US Court of Appeals for the Second Circuit came in a case where a New York debt collection law firm, the Law Offices of Crystal Moroney PC, is attempting to escape a civil subpoena the CFPB issued in June 2017. A lower court ruled in the CFPB’s favor in August 2020.

The law firm argued in part that the CFPB’s funding through the Fed and outside of the Congressional appropriations process violates the Constitution’s Appropriations Clause and nondelegation doctrine. The Second Circuit panel rejected that argument.

The Supreme Court is set to hear arguments in its upcoming October term in the CFPB’s appeal of an October 2022 ruling in the US Court of Appeals for the Fifth Circuit that the CFPB’s funding violates the Constitution and the agency should be subject to Congressional appropriations.

The Second Circuit said in its Thursday ruling that “cannot find any support” for the Fifth Circuit’s ruling on the CFPB’s funding in Supreme Court precedent.


Decision

Bloomberg Law




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2nd Circuit: The funding structure of the CFPB is not unconstitutional (Original Post) In It to Win It Mar 2023 OP
Sullivan is a Trump appointee. The other two are Carter and GWHBush appointees. onenote Mar 2023 #1
Well good news but the unelected kings in robes will unfortunately decide it is Fullduplexxx Mar 2023 #2
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