CFPB Independent Funding Constitutional, Second Circuit Rules (1)

The Consumer Financial Protection Bureau’s independent funding through the Federal Reserve is constitutional, the Second Circuit ruled ahead of a US Supreme Court review on the issue.

The unanimous Thursday ruling from a three-judge panel of the US Court of Appeals for the Second Circuit stems from a New York debt collection law firm’s attempt to escape the CFPB’s 2017 civil subpoena. A lower court ruled in the CFPB’s favor in August 2020.

The debt collector, the Law Offices of Crystal Moroney PC, argued in part that the CFPB’s funding—derived from the Fed and outside of the Congressional appropriations process—violates ...