Supreme Court Delivers Favorable Decision to Uphold CFPB Funding Structure

The National Coalition for Asian Pacific American Community Development (National CAPACD) applauds the Supreme Court’s decision to uphold the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) funding structure. This ruling allows the CFPB to continue its essential work in creating a safe financial marketplace for all consumers and promoting economic and racial justice for Asian American, Native Hawaiian, and Pacific Islander (AA and NHPI) communities and other households of color.

“The Supreme Court’s decision to reject the baseless arguments against the CFPB’s funding mechanism is a significant win for consumers and communities across the country,” said Seema Agnani, Chief Executive Officer of National CAPACD. “This ruling reaffirms the independence of the CFPB, enabling it to continue protecting the public from abusive financial practices, including AA and NHPI communities and other marginalized groups that are disproportionately affected by unsafe and exploitative financial products and services.”

The case originated from a lawsuit by two trade associations against the CFPB over a regulation to prevent predatory lending practices. The trade associations claimed that the CFPB’s funding was unconstitutional.

The CFPB’s work is crucial in advancing racial equity in financial services. By curbing exploitative practices of big banks and predatory lenders, the CFPB helps close the racial wealth gap and fosters greater financial security for AA and NHPI communities. Since its inception, the CFPB has secured over $19 billion in relief for consumers wronged by financial institutions. Recent initiatives include policies to limit exorbitant fees, such as capping excessive credit card late fees and proposing restrictions on punitive overdraft charges. The agency also works to ensure fair credit reporting, mitigate the negative impacts of medical debt collections, combat inequities in home appraisals, and enhance consumer data rights.

National CAPACD, along with a diverse coalition of partners, remains committed to supporting the CFPB’s mission. We will continue to advocate for robust consumer protections that benefit AA and NHPI communities and work towards building a fairer and more inclusive economy for all.