“An Arrow Has Found its Target”- Federal Appeals Court Deems CFPB Funding Method Unconstitutional...

In a decision with potentially far-reaching implications for the CFPB, a three-judge panel of the U.S. Circuit Court of Appeals for the Fifth Circuit yesterday ruled that the Bureau’s funding structure is unconstitutional. The case involved a longstanding challenge to the Bureau’s 2017 Payday Lending Rule and marks another significant obstacle for the Bureau two years after the Supreme Court’s decision in Seila Law that its leadership structure violated separation of powers principles.