Supreme Court majority seems skeptical of challenge to consumer watchdog

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Justices hear a challenge to lower-court ruling that said the funding mechanism for the Consumer Financial Protection Board was unconstitutional.

Congress adopted to ensure the CFPB’s independence violated the Constitution. Some conservative justices who are normally suspicious of the power of federal agencies also voiced concerns, wondering if the challenge went too far.

The agency at the center of the controversy was created by Congress in response to the 2008 financial crisis, putting scattered federal consumer protections under one structure.who at the time advised the Obama administration, played a lead role in the legislation. In a speech last week defending the agency, Warren said the CFPB has returned $17 billion to consumers.

Prelogar faced tough questioning from some of the conservative justices, who wondered what the limits should be on Congress giving up its power of the purse to the executive branch. Kavanaugh objected to Francisco saying Congress had set up a perpetual funding source for the CFPB. That “implies that it’s entrenched and that a future Congress couldn’t change it,” Kavanaugh said. “But Congress could change it tomorrow, and there’s nothing perpetual or permanent about this.”

 

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