Latest York state Attorney General Letitia James speaks at a news conference in Latest York, Sept. 8, 2022.
Caitlin Ochs | Reuters
WASHINGTON — Latest York Attorney General Letitia James is leading a multistate effort to induce the Supreme Court to overturn a call that threatens the existence of the nation’s leading consumer protection agency.
Attorneys general in 22 other states and the District of Columbia joined Latest York in an amicus transient filing to the court Tuesday in support of the Consumer Financial Protection Bureau. The transient comes a day after dozens of current and former Democratic lawmakers filed a separate amicus transient defending the agency.
“The CFPB has proven that it’s capable of arise for consumers and help states, including Latest York, to be certain that our residents are protected,” James said in an announcement. “That’s the reason opponents are attacking the agency, and that’s the reason I’m proud to beat back on these openly anti-consumer protection efforts. I’ll proceed to work with my fellow attorneys general to defend the CFPB and ensure it’s capable of work with our respective states to assist protect consumers throughout the country.”
The Supreme Court agreed in February to listen to arguments after the Biden administration appealed the U.S. fifth Circuit Court of Appeals’ decision that the CFPB’s funding method is unconstitutional. The justices may not issue a final ruling until 2024.
The CFPB was created under the 2010 Dodd-Frank Act after the 2008 financial crisis. Congress selected to fund the agency from the Federal Reserve and permit the CFPB to avoid the annual appropriations process to spare it from unpredictable funding cycles.
Republican lawmakers have routinely criticized the CFPB for continuing to operate outside of appropriations, but Democrats argue that the agency has congressional oversight and must justify its budget to the House on a biannual basis.
If the Supreme Court decides to not overturn the fifth Circuit’s ruling, it could invalidate “quite a few CFPB rules and other regulatory actions” and harm thousands and thousands of Americans while destabilizing the buyer financial sector, the attorneys general said in an announcement.
The attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, Latest Jersey, Latest Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and Wisconsin signed on to the amicus transient alongside Latest York and the District of Columbia.
