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John R. Coleman quoted in WSJ article, “Appeals court ruling casts shadow over CFPB activities”

Wall Street Journal

John R. Coleman

The WSJ article, “Appeals court ruling casts shadow over CFPB activities,” discusses the Fifth Circuit’s decision in CFSA v. CFPB that found the bureau’s funding structure to be unconstitutional. The ruling could upend an array of current regulations and invite challenges to new rules from the agency, including planned restrictions around checking account overdraft fees and lending to small businesses. Equally important, the case creates a threat to the agency since there is no easy remedy for changing the bureau’s funding source, particularly if there is a power split following the midterm elections. Coleman, former CFPB deputy general counsel, noted that there is no fallback position. “If the Supreme Court strikes down the CFPB’s funding mechanism, it will likely be up to Congress to decide how to fix it.”

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