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US Lenders Could Face Less Scrutiny After Ruling on US Watchdog

Oct. 21, 2022, 1:50 PM

A wide range of companies offering financial services could face less scrutiny after a court ruling found a US watchdog agency’s funding structure unconstitutional and vacated a regulation on payday lending.

If it sticks, the decision might have extensive reach, favoring the industry while weakening the Consumer Financial Protection Bureau, which has been a lightening rod since its creation after the 2008 financial crisis. It could undermine the foundation of current agency rules. Some analysts said the court’s decision may help everyone from fintechs to banks as they defend themselves against enforcement actions.

“Although the opinion is limited to ...