New Wave of Challenges to CFPB's Funding Gains Steam

The idea that the CFPB's funding is unconstitutional because it relies on "profits" from the Federal Reserve System (which has been unprofitable since 2022) is gaining serious traction.

American Banker noted that in August 2024, four separate companies challenged CFPB enforcement actions, claiming its funding mechanism is unconstitutional. Alan S. Kaplinsky spoke to a reporter about why the challenges deserve serious attention and thought.

Alan is the former longtime Practice Leader of Ballard Spahr's Consumer Financial Services Group and a thought leader on the firm's Consumer Finance Monitor blog and Consumer Finance Monitor podcast.

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