WIN: Court Order Ensures Vital Funding for Consumer Financial Protection Bureau
WASHINGTON, D.C. – Today, a federal judge ordered the Consumer Financial Protection Bureau (CFPB) to continue requesting funding from the Federal Reserve Board of Governors as required by the Dodd-Frank Act. The order rejects CFPB Acting Director Russell Vought’s attempt to starve the agency of the money necessary to do its work.
The ruling comes in response to a lawsuit brought by Rise Economy, the National Community Reinvestment Coalition, and the Woodstock Institute to challenge Vought and the CFPB’s announcement that they would not request money from the Federal Reserve. In today’s opinion, the court entirely rejected the CFPB’s interpretation of the law providing the CFPB with appropriations and ordered the CFPB to request needed funding going forward. The plaintiffs are represented in the lawsuit by Public Citizen Litigation Group and Rosen, Bien, Galvan & Grunfeld, LLP.
Stephanie Garlock, attorney at Public Citizen Litigation Group and lead counsel for the plaintiffs, issued the following statement:
“The Trump administration tried to cut off the CFPB’s funding to prevent the agency from carrying out its vital work protecting American consumers. Today’s court decision puts an end to that unlawful gambit and ensures that the CFPB will have a stable source of funding to support its work going forward, as Congress intended.”
Paulina Gonzalez-Brito, CEO of Rise Economy, stated: “Today’s ruling shows that the Trump Administration’s unlawful attempts to deny funding to the CFPB will not be tolerated. Americans rely on the CFPB to protect them from big banks and other corporate actors who seek to take advantage of them. The CFPB has returned over $21 billion to American consumers since its inception in 2011, and its existence protects Americans from financial predatory actors. This ruling is a victory for Americans.”