The Threat to the CFPB – and How You Can Help

November 19, 2024

In May of 2024, the U.S. Supreme Court ruled 7-2 in favor of the Consumer Financial Protection Bureau (CFPB), delivering a major victory to consumers. But this was just the latest in a long series of challenges to the nation’s top consumer watchdog’s independent funding structure and to its mission to protect consumers in the financial marketplace. And it won’t be the last.

In the wake of the 2008 financial crisis, Congress created the CFPB as an independent and autonomous agency to protect consumers and to help restore consumer confidence in the financial markets. Congress granted the CFPB the authority to monitor and police financial institutions and funded the CFPB in a similar manner to other banking agencies, ensuring the agency’s stability and political independence with funding through the Federal Reserve.

Since its establishment in 2010, the CFPB has effectively used its authority to serve the public interest. The CFPB’s supervision and enforcement actions alone resulted in $19 billion in ordered relief for more than 195 million eligible consumer accounts. Over the same period, the CFPB has issued $4.8 billion in civil money penalties to hold bad actors accountable and deter abusive practices. Not surprisingly, its mission is popular with majorities of Democrats, Republicans and independents.

We can’t wait to begin building public and congressional support for the CFPB. 

We are urging those of you on the ground to submit letters to the editor in your local papers highlighting examples of the devastating problems you are seeing and how consumers need the CFPB’s help.

Writing a letter to the editor (LTE) of your local or regional newspaper is a quick and effective way to reach a targeted audience. Here are tips to help you write and place an effective letter and talking points and facts concerning the Fifth Circuit’s ruling. 

Maybe the CFPB helped your client get relief from a bank that charged an improper junk fee. Maybe you see the abuses of the credit bureaus or overdraft fees that the CFPB plans to rein in with new rules that are coming. Maybe you have seen the impact of predatory lending of the type that the CFPB has attacked in recent enforcement actions. Whatever you are seeing, get out the word.

We also urge you to reach out to your senators and representatives to convey your support for the CFPB and to provide examples of why the agency is needed. Well-written letters from their constituents can have a big influence on legislators’ priorities and decisions. Follow these simple steps to ensure your letter is as effective as possible. Or simply send them a copy of your letter to the editor.

We need to take every opportunity to highlight the critical work the CFPB does to protect American consumers. Stay tuned for more information about webinars, social media outreach, and actions you can take.

Thank you for joining us in this fight.