Fort Worth Chamber’s Post

We are breathing a sigh of relief at Common Future to see the #SCOTUS ruling holding that the funding structure for the Consumer Financial Protection Bureau (#cfpb) is #constitutional. Given our work to advance #racial and #economic #equity, we know how critical it is having a #federal #agency that works to protect #consumers and that also supports special purpose credit programs (#SPCP), which strive to ensure excluded groups have access to credit and can fully participate in our economy. We of course still have so much work to do to create an equitable economy, but we are definitely taking this win. Sandhya Nakhasi Ryan Glasgo Agnetha Jaime Gloshay https://lnkd.in/ewRA9iXT

Finally some good news from the courts: today the Supreme Court issued it's decision in CFPB v. Community Financial Services Association, finding that the CFPB's independent funding structure is constitutional. This is a HUGE win for the CFPB and the hundreds of millions of consumers that it protects. Finally, enforcement actions and rules that were stalled pending this decision can start moving again and the CFPB can get back to full effectiveness. Read the decision here: https://lnkd.in/eG-HXRr6 and NACA's statememnt on the decision here: https://lnkd.in/ewi9nfj5

Honored to have been able to contribute to the policy and advocacy efforts that have led to the Consumer Financial Protection Bureau’s victory in this important case — a legal fight that could have determined the agency’s funding mechanism and its very existence. No matter how one may feel about the agency, its work for fairness and transparency in the financial system has saved consumers and working-class families billions of dollars. Essentially, protecting vulnerable people from unfair and deceptive practices transcends party lines; a recent poll found that two-thirds of independents, three-quarters of Republicans, and over eight in ten Democrats support the CFPB. As I wrote in May last year, the bottom line is that we need a strong CFPB to continue to crack down on the industry’s illegal and discriminatory actions — and right now, despite the pressure from its opponents, the CFPB is delivering. —— P.S: Last year, as the CFPB was still waiting for a decision from the Supreme Court, I wrote an op-ed highlighting the consumer agency’s crucial work. Feel free to click the link on top of this New York Times piece to read my op-ed. https://lnkd.in/ezuffqv4 —— #cfpb #protectconsumers

Love this response to all the "noise" around OD fees and programs. Many institutions are considering getting rid of their OD services, or making extreme and unnecessary changes due to the scrutiny from Regulators. Instead of making these rash decisions, Mike Schenk responds, "Let's us not over react," and goes on to suggest... “Make sure you're paying attention to your fees. Go over them regularly... Look at the overdraft advertisements you have. Make sure they're not deceptive. Ensure that people really understand what they're getting into. You definitely want to avoid anything that would incent or even seem to incent members to overdraw repeatedly. Identify those heavy users and not only offer financial counseling but help them understand what other alternatives they might have to avoid those fees. All of those things are really important.” If you're even considering making any changes to your program, also consider partnering with experts to ensure you're staying compliant, and consumer-friendly.

The Court of Justice of the European Union has just issued a press release in the Provident case, with big (positive) implications for consumer financial protection regarding a) credits from non-financial institutions, b) excessive non-interest charges and c) even debt collection costs. You can find the press release below and can read more about the case in my future book (which I hope to finish soon and publish next year). https://lnkd.in/dg7dXbFf

We are getting used to as US citizens and residents of SCOTUS using judiciary review to determine and deciding on various legal matters. CFPB was created as a result of 2007-2008 financial events in the US economy. It is important as taxpayers and citizens to be informed and protected by the regulations and regulatory bodies and that they are adequately funded and resourced. The conservative judicial members of the Supreme Court also agree. #SCOTUS #consumer #financial #protection #money #finance #judicial #review

One more quick plug for today’s free Husch Blackwell webinar at 1pm EST! Join Marci Kawski, Christopher Friedman, and me as we unpack the recent CFPB Supreme Court case and its many implications!

Today, the Consumer Financial Protection Bureau published a new analysis on state Community Reinvestment Act (#CRA) laws, highlighting how states can help ensure financial institutions' lending, services, and investment activities meet the credit needs of their communities. Read more here: https://lnkd.in/dxYuQB5X

#Banks and #creditunions must gear up for #compliance with #regulations like overdraft fees, late payment fees, 1071 Rule, 1033 Rule, etc., to stay profitable while prioritizing customers' and members' protection. The Supreme Court's 7-2 ruling backs the Consumer Financial Protection Bureau funding structure, ensuring consumer finance oversight. https://lnkd.in/euDgsrka #BankingRegulations #CreditUnions #Compliance #OverdraftFees #LatePaymentFees #1071Rule #1033Rule #CustomerProtection #FinancialCompliance #CFPB #ConsumerProtection #FinancialOversight #SupremeCourtRuling #BankingIndustry #FinancialServices #RegulatoryCompliance #CustomerFirst #Profitability #FinancialInstitutions #ConsumerFinance #BankingLaw #bankingindustry #incverified #incprofile #quintefinancialtechnologies #Quinte

Our blog below describes in detail a motion to dismiss filed late last week by Populus Financial Group in connection with an enforcement lawsuit brought in 2022 in Federal District Court for the N.D. Texas by the CFPB which, until recently, was stayed until the Supreme Court in May decided CFSA v. CFPB. In that case the Supreme Court held that the funding mechanism in Dodd-Frank under which the CFPB was and is funded by the Federal Reserve Board comported with the Appropriations Clause of the Constitution. The motion to dismiss focuses on the fact that since September, 2022 when the Federal Reserve System started losing money, it has been unlawful under Dodd-Frank and the Appropriations Clause for the Federal Reserve Board to keep on funding the CFPB. (As a reminder, Dodd-Frank only allows the Fed to fund the CFPB out of “combined earnings of the Federal Reserve System. This is now the second time in less than a week that this issue has been teed up. Populus’s brief makes a very compelling argument that is going to be very difficult for the CFPB to counter. https://lnkd.in/e6tdHCrH