Supreme Court Case May Have Big Impact on CFPB

June 25, 2013
American Banker  
payday lending news

The Supreme Court is scheduled to hear two cases later this year that could drastically impact lenders and potentially challenge the legality of certain new regulations. One week after the high court agreed to hear a case that might compromise regulators' use of "disparate impact" theory to pursue fair lending cases, it confirmed on June 24 that it would also hear a case that scrutinizes President Barack Obama's recess appointments to the National Labor Relations Board. Because Consumer Financial Protection Bureau (CFPB) director Richard Cordway's recess appointment was made the same day as the NLRB appointments, the legal powers given to the CFPB under the Dodd-Frank Act could be at stake. The newly formed agency was granted regulatory authority to write new rules that cover all banks as well as the power to regulate non-banks such as debt collectors and payday lenders. In a drafting error, however, the law said the non-bank regulators were not valid until a Senate-confirmed director of the agency was installed.
Web Link -
May Require Paid Subscription 







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`