Attorney General Aaron Frey joined a multistate coalition in submitting an amicus brief to the Supreme Court, urging the Court to overturn a decision of the US Court of Appeals Fifth Circuit that threatens the future operation of the Consumer Financial Protection Bureau (CFPB) and the viability of more than ten years of the agency’s regulatory and enforcement activities.  The CFPB was set up to create nationwide consumer protection standards and to work with, and supplement individual state agencies according to a press release received from the AG’s office earlier this month.

In the instant case, the Fifth Circuit concluded that the agency’s operations violate the US Constitution’s Appropritions Clause because it does not receive an annual appropriations from Congress and is instead funded through the Federal Reserve.  The Court ordered that a payday lending regulation created by the agency be vacated.  The coaltiion of 24 Attorneys General, led by New York Attorney General Letitia Jones, urges the Supreme Court to reverse because the Fifth Circuit’s decision will jeopardize the beneficial consumer protection and regulatory activities taken by the CFPB.

“Banks, lending companies and financial institutions are incredibly sophisticicated forces that have the influence and resources to exact significant power over consumers,” said AG Frey.  “The Consumer Financial Protection Bureau (CFPB) works to elevate the position of consumers by increasing fairness in conumer transactions with these financial entities.  It would be disastrous for consumers to lose the enforcement and regulatory power of the CFPB.”