What does the Fifth Circuit's decision in Community Financial Services Association of America, Limited v. Consumer Financial Protection Bureau ("Community Financial") portend for the CFPB and those it supervises and regulates? In Community Financial, the court held that the CFPB's funding by the Federal Reserve violated the Appropriations Clause of the United States Constitution and, therefore, its payday lending regulation was void. Although neither ruling directly on the constitutionality of any other CFPB promulgated regulation or enforcement action nor the bureau itself, the decision has already been relied upon in other pending cases to argue that the CFPB itself is or at least its promulgated rules and enforcement actions are void.
This presentation will look at the history leading up to the Community Financial decision, the decision itself, and how things may unfold in the future.
Francis "Trip" Riley, Saul Ewing Arnstein & Lehr, LLP