Oct. 3, 2023
Carson City, NV — Today, Attorney General Aaron D. Ford announced he has joined a coalition of sixteen attorneys general in asking the Supreme Court to reverse a lower court decision that threatens the funding and existence of the Consumer Financial Protection Bureau.
On Tuesday, Oct. 3, the Supreme Court will hear oral arguments in Consumer Financial Protection Bureau v. Community Financial Services Association of America. The CFSA, a trade group representing payday lenders, has argued that the CFPB’s funding is unconstitutional, and has asked the Supreme Court to affirm the Fifth Circuit’s unprecedented and dangerous legal ruling that would decimate the CFPB. Earlier this year, AG Ford joined other attorneys general in filing an amicus brief in this case.
"I urge the Supreme Court to overturn the Fifth Circuit's shortsighted and legally nebulous ruling that would render an extraordinarily important agency toothless,” said AG Ford. “Finding the funding structure for the CFPB unconstitutional could call past rulemaking decisions into question, cause unforeseen economic impacts and raise legal questions that would be disastrous for our country’s current structure.”
The CFPB serves several functions that are invaluable to states and state attorneys general. It provides necessary transparency and clarity to consumers seeking to navigate a confusing and opaque financial marketplace. It provides educational resources that aid consumers with questions or issues related to their various financial accounts and also provides an easier avenue for complaints against financial bad actors. It also supports state regulation of the financial industry and provides federal overlay for issues within the financial industry that states are unable to address. Together with the CFPB, state attorneys general have taken action to stop predatory companies, return billions of dollars back to defrauded consumers, and protect consumers from scammers.
The coalition of 16 attorneys general released the following statement:
“Since its inception, the Consumer Financial Protection Bureau has been vital to consumers nationwide and to states seeking to protect consumers from overzealous and predatory actors in the financial marketplace. As state attorneys general who are committed to consumer protection and ensuring strong regulatory frameworks are in place to prevent widespread financial abuses, we are unequivocal in our support of the CFPB and its independent regulatory authority. State attorneys general are known as “the People’s Lawyer” for a reason — we advocate for the best interests and wellbeing of our constituents against predatory businesses and lenders, and the CFPB is an invaluable partner in that work.”
In addition to AG Ford, the coalition is made up of the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Illinois, Maryland, Massachusetts, Minnesota, New York, North Carolina, Oregon, Rhode Island, Vermont and Washington.
###