In response to the Supreme Court’s ruling in favor of the Consumer Financial Protection Bureau (CFPB), National Community Reinvestment Coalition (NCRC) President and CEO Jesse Van Tol released the following statement:
“It’s always nice to see the courts get something right – especially in this tawdry circumstance where payday loan predators sought to wriggle out of basic oversight using absurd distortions of law and fact. But this vindication of the CFPB’s existence and funding structure is especially meaningful because of its positive repercussions all across our economy.
“Businesses can have certainty about the regulatory space. Working-class people can know that somebody in government has their back. And that confidence should soon spread to small business owners as well, as today’s decision hastens the resolution of similarly bad-faith legal challenges to the Section 1071 small business lending rule that protects entrepreneurs from discrimination.
“It’s a pity this farce dragged on as long as it did, stalling key cases and delaying helpful new regulations. Now the agency can get back to the work it’s meant to be doing: Protecting hardworking families from getting swindled.”
The separate trade association lawsuit to block Section 1071 is largely predicated on the same constitutionality argument the Justices just rejected. Now that the high court has rejected the core component of that lawsuit, the trade associations’ only remaining arguments against collecting basic data about small business loan decisions are a pair of easily disproved procedural claims. Click here for a detailed analysis of the plaintiffs’ errors in that case.
