A negative decision would have significantly undermined the CFPB’s power to protect households from exploitative financial practices

For Immediate Release: 
May 16, 2024

Contact: 
Rob Mayo
rmayo@woodstockinst.org | 312-368-0310 x 2024

This morning, the Supreme Court issued a decision in favor of the Consumer Financial Protection Bureau (CFPB) in CFPB v. Community Financial Services Association of America (CFSA). The Court ruled that arguments against the CFPB’s independent funding mechanism brought by CFSA, the payday lending industry’s lobbying group, were unfounded.  

In response, Horacio Méndez, President & CEO of Woodstock Institute, issued the following statement:

 “Today’s decision is an essential victory for consumers and allows the CFPB to continue protecting everyday Americans from unfair and abusive financial practices, including scams, junk fees, and predatory lending.

 “As an organization committed to advancing racial equity and economic justice, Woodstock Institute sees the CFPB as an invaluable partner in our efforts to identify and root out unfair policies that disproportionately harm Black and Brown households. Since its creation, the CFPB has proven its unique value as a regulator time and time again by penalizing bad actors and putting money back into consumers’ pockets. The Bureau’s data and efforts at the federal level inform our work at the state and local levels as well. Now that the CFPB’s future has been secured in the wake of this attack, we look forward to continuing this work.”

Since its founding in 2011, the CFPB has returned over $20 billion to consumers harmed by predatory financial practices. Recent consumer protection initiatives from the Bureau include capping credit card late fees at $8, significantly decreasing overdraft fees, reducing the impact of medical debt on consumers’ credit reports, and more.

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Woodstock Institute advances economic and racial justice within financial systems through research and advocacy across Illinois and the United States. Among their areas of focus are predatory lending, access to banking, debt collection, and municipal fines and fees.