INDIANAPOLIS, IN - Today, the Supreme Court in a 7 to 2 decision declared that the funding method used to fund the Consumer Financial Protection Bureau (CFPB) is indeed constitutional. This decision means that the CFPB can continue its work in protecting and supporting consumer rights.

The Supreme Court has upheld the constitutionality of funding of the Consumer Financial Protection Bureau through the Federal Reserve, allowing a vital agency to continue its work in holding Wall Street and predatory lenders accountable to consumers, and promoting economic and racial justice. The lawsuit was originally filed by the Community Financial Services Association, a lobby group for payday lenders, after the CFPB restricted their capacity to continue withdrawing funds from consumers after two failed attempts.

“The continuation of the CFPB is crucial to consumer protections nationwide, making today’s ruling a victory that we at the Institute celebrate. The CFPB does vital work in supporting Hoosiers of all economic status to ensure that they are treated fairly. Recent CFPB regulations targeting credit card late fees and overdraft fees are particularly important for low-income Hoosiers, for whom such charges are a financial drain,” said Zia Saylor, Research Associate at the Indiana Community Action Poverty Institute, Co-Chair of Hoosiers for Responsible Lending.

Handling an average of 3,000 consumer cases per day in addition to larger bank enforcement and research output, the CFPB has returned over $17.5 billion since inception to the pockets of Americans who have been exploited within the financial market. This ruling, allowing the continuation of its operation, will only increase the financial benefit to Hoosiers and Americans nationwide. For example, the CFPB recently awarded and distributed $45,832,242 in damages to 18,871 consumers in Indiana that were harmed by predatory organizations LendUp Loans LLC and Think Finance.

Hoosiers for Responsible Lending (HRL) was created by a network of policy advocates working to empower communities regarding responsible lending and informed borrowing, and they celebrate the Supreme Court’s ruling that will allow the CFPB to continue its great work supporting and protecting Hoosiers. “Today’s U.S. Supreme Court decision is critical to ensuring that the CFPB remains able to protect and support Indiana’s most vulnerable consumers. Prosperity Indiana applauds this decision and the work of the CFPB to keep Hoosier communities and local economies thriving” states Aspen Clemons, Executive Director of Prosperity Indiana, Co-Chair of Hoosiers for Responsible Lending.

HRL has a Steering Committee of diverse organizations that work to create a fair, transparent credit marketplace that benefits consumers, lenders, and the Hoosier economy. HRL Steering Committee members also act as thought leaders to the 2,000+ members of this statewide coalition. Some additional comments on the Supreme Court ruling from these Steering Committee members are included below.

"This is a relief and great news for consumers and advocates across the nation!" - Mark Russell, Director of Advocacy with the Indianapolis Urban League (Indianapolis, Indiana)

“Predatory lending affects lower-income people disproportionately and it’s definitely a target for us to try to stop. We appreciate the CFPB’s valuable partnership in that and are glad to hear that Hoosiers won’t lose their protection because of a misguided lawsuit.” - Steve Hoffman, President and CEO of Brightpoint (Fort Wayne, Indiana)

“This is very good news for the people that we work with every day. The CFPB helps ensure that all consumers have access to fair and equitable lending. We’re so glad this is now behind them, and they can continue their work.” - Marie Morse, Executive Director of HomesteadCS (Lafayette, Indiana)

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About Hoosiers for Responsible Lending

Hoosiers for Responsible Lending was created by a network of advocates working to empower Hoosiers who have been affected by any form of predatory lending. HRL raises awareness of predatory practices across Indiana in order to hold lenders accountable and create attainable pathways to wealth building for all Hoosiers. The coalition includes veterans organizations, faith communities, consumer groups, and social service providers who recognize both the benefits of equitable, responsible lending and the damages of predatory lending. Hoosiers for Responsible Lending is Co-Chaired by Prosperity Indiana and the Indiana Community Action Poverty Institute.