CFPB’s Independent Funding Faces New Fight After Court Ruling (1)

The Fifth Circuit opened the door to yet another legal challenge to the Consumer Financial Protection Bureau’s constitutionality, this time over its funding.

An en banc panel of the U.S. Court of Appeals for the Fifth Circuit on Monday vacated a lower court ruling that denied All American Check Cashing Inc.’s bid to dismiss a CFPB enforcement action on constitutional grounds.

The ruling allows the U.S. District Court for the Southern District of Mississippi to hear arguments on the 2016 enforcement action, as well as potential challenges to the CFPB’s independent funding, which comes through the Federal Reserve without any ...