LAW-News-CFPB-0624 | LAW® 553®

Last month the Supreme Court voted 7-2 to reduce a lower court ruling against the Consumer Financial Protection Bureau and stated that how the organization is funded does not violate the Constitution.

The CFPB was created in 2008 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in response to the subprime mortgage crisis and following Great Recession. The Supreme Court’s ruling is seen as a victory for consumers as the CFPB has returned nearly $20B to consumers since its creation.

Approximately 17,700 vehicle loan or lease complaints were submitted to the CFPB in 2023. The organization forwards most dealership complaints to the FTC, but will investigate those made against “buy here, pay here” dealerships.

The Supreme Court’s decision highlights their confidence in the CFPB and the work it does. This underscores the importance of dealers taking all customer interactions seriously, operating fairly, and using the most up-to-date financing documents available.

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