Will SCOTUS affirm in CFPB vs CFSAA Ltd (appropriations clause edge case)?
Dec 31



  • Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited is a case involving the appropriations clause in Article I, Section 9 of the Constitution, the Dodd-Frank Act, and the Consumer Protection Act. The justices were asked to determine whether the funding from the Federal Reserve to the Consumer Financial Protection Bureau (CFPB), violates the Appropriations Clause.

  • The Dodd-Frank Act and the Consumer Protection Act were passed by Congress in response to the 2007 financial crisis. These authorized the creation of the CFPB which receives funding directly from the Federal Reserve, rather than appropriations from Congress.

  • The appropriations clause in Article I, Section 9 of the Constitution requires congressional “Appropriations” for any “Money … drawn from the Treasury.”

  • The CFPB was sued after issuing a rule that would enforce disciplinary action against payday lenders who attempted to withdraw payments from borrowers' bank accounts after two consecutive attempts due to insufficient funds. The United States Court of Appeals for the 5th Circuit held that CFPB’s funding did violate the appropriations clause.

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