The Supreme Court gave a mostly skeptical hearing Tuesday to payday lenders who are challenging the constitutionality of the Obama-era consumer protection agency. In 2010, when Congress adopted the consumer agency to protect borrowers from deceptive loans, it decided to fund the agency through fees collected by the Federal Reserve. Earlier this year, the conservative 5th Circuit Court of Appeals ruled the agency was unconstitutional because Congress failed to set an appropriation. You are flying in the face of 250 years of history," she told the attorney, Noel Francisco, representing the payday lenders. The 5th Circuit ruling, however, did not immediately affect the bureau's funding or operations as the parties continue their legal fight.

Source: Los Angeles Times October 04, 2023 09:08 UTC