Since its establishment about 14 years ago, the Consumer Financial Protection Bureau has encountered lawsuits, political battles, and legal challenges questioning whether the aggressive federal agency overseeing consumer finances should even exist.
This week marked a turning point as the Supreme Court decisively ended the final major legal challenge to the bureau’s authority. The court ruled 7-2 that the CFPB can continue to draw its funding from the Federal Reserve rather than relying on annual appropriations from Congress.
The decision overturned a lower court’s ruling and received accolades from consumer advocates and some within the banking sector. They argued that dismantling the bureau’s work over the past 14 years would disrupt the financial system.
With the legal uncertainties resolved, CFPB Director Rohit Chopra announced on Friday plans to expand the bureau’s investigative team.
CFPB (Via Daniel Burry/Getty Images)
Already, the bureau has taken legal steps on approximately twelve pending cases against companies accused of misconduct, which were stalled due to the Supreme Court case.
“The court’s decision clarifies that the CFPB is here to stay,” Chopra affirmed. “Now, the bureau can move forward with its enforcement efforts.”
Chopra and other senior CFPB officials outlined plans to increase the size of the bureau’s enforcement office to around 275 staff members. They also intend to address issues related to pawn shops, medical billing, credit reporting, and financial data through regulatory actions.
Established following the 2008 financial crisis by Democratic Sen. Elizabeth Warren of Massachusetts, the CFPB’s mandate includes overseeing mortgages, car loans, and other aspects of consumer finance. Since its inception, the bureau has faced opposition from Republicans and their financial supporters.
