AFL-CIO Praises SCOTUS for Upholding CFPB Funding Constitutionality

The Facts -

Supreme Court Upholds Funding for Agency Crucial to Holding Wall Street Accountable

Liz Shuler, AFL-CIO President, made a statement regarding the Supreme Court's 7-2 vote in favor of the funding method Congress selected for the Consumer Financial Protection Bureau (CFPB). The AFL-CIO has been instrumental in establishing the CFPB, recognizing the hardships inflicted on working-class citizens due to the unchecked greed of major banks during the 2008 financial crisis.

Shuler stated, "Job losses, foreclosures, and depletion of life savings were rampant because there was no defender against Wall Street's unregulated greed in Washington. The CFPB has been a safeguard against deceptive practices related to mortgages, credit cards, and other financial products for over a decade. Despite continual corporate attempts to undermine the bureau's work to favor the wealthy, today's decision signifies a crucial victory for all workers."

The ruling ultimately affirms the CFPB's constitutionality, enabling this crucial agency to continue its mission of holding Wall Street and predatory financial bodies accountable.

Background of CFPB & Involvement of AFL-CIO

The AFL-CIO crucially contributed to the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act and the establishment of the CFPB. The organization hosted the inaugural coalition meeting in 2009 with labor unions, nonprofit organizations, and consumer advocacy groups for creating this consumer protection agency. Since its inception, the CFPB has reimbursed consumers $20 billion who were deceived by major banks and other financial offenders.

The agency has recently adopted policies to control junk fees that burden working families with tens of billions of dollars every year. This includes capping excessive credit card late fees and proposing limits on punitive overdraft fees. Other significant initiatives include endorsing fair credit reports, mitigating the impact of medical debt collections, addressing inequity in home appraisals, augmenting consumers’ rights over their data, and more.

For further information, contact Mia Jacobs at 202-637-5018.

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