The high court will review an appeals court ruling that found the CFPB’s funding mechanism is unconstitutional.
If successful, the lawsuit backed by business groups could force the CFPB to be funded through appropriations bills instead of fees levied on companies.
That would give Republicans more power to undermine the agency, which recently levied a record $3.7 billion fine against Wells Fargo to settle a wave of allegations that the bank mismanaged consumer accounts.
“Despite years of desperate attacks from Republicans and corporate lobbyists, the constitutionality of the CFPB and its funding structure have been upheld time and time again,” said Sen. Elizabeth Warren (D-Mass.), who helped establish and lead the CFPB after Congress created the agency in response to the 2008 financial crisis.
Business groups representing big banks and other corporations have been attacking the watchdog for years, arguing the CFPB has unchecked power.
The U.S. Chamber of Commerce said Monday it “welcomes” the Supreme Court’s interest in the case, taking aim at the agency’s recent proposal to limit credit card late fees.
“The CFPB’s broad power touches every consumer in the United States and its decisions often have far-reaching consequences. Recent actions by the agency to penalize responsible consumers who pay their bills on time is only the most recent example of why oversight is necessary,” the Chamber’s executive vice president and chief policy officer Neil Bradley said in a statement.
