Richmond, Va.—After the Supreme Court announced that it would hear a case in which the Fifth U.S. Circuit Court of Appeals attacked the funding mechanism of the Consumer Financial Protection Bureau (CFPB), Virginia Organizing released the following statement:
“If the Fifth Circuit decision is allowed to stand, it will be harmful to all of us,” said Chairperson Lily Hungarland. “Virginia Organizing worked with Americans for Financial Reform and many other groups to support the creation of the CFPB because we could see how many people were impoverished by predatory lending. The big banks and other lenders will always take advantage of low-income folks as much as the government allows them to.
“Since the CFPB got started, they have returned over $13.5 billion in relief to about 175 million consumers in the form of restitution or canceled debts, and $1.8 billion in civil penalties – money that can make consumers whole even if the company that defrauded them has vanished. They force the big banks, the credit card companies, and other lenders to follow the rules.
“The Supreme Court must protect the funding of the CFPB. If they don’t, it will be a disaster for all Americans, especially the most vulnerable.”