The Supreme Court heard arguments on Tuesday in a case challenging the Consumer Financial Protection Bureau's (CFPB) funding mechanism, which is provided directly by the Federal Reserve. The plaintiffs, two trade groups representing payday lenders, argue that this is unconstitutional. Both conservative and liberal justices seemed skeptical of the plaintiffs' theory, with Justice Stephen Breyer noting that the CFPB's funding structure is similar to other independent agencies. The outcome of the case will have a significant impact on the CFPB's ability to protect consumers from predatory lenders.
