Supreme Court rejects payday lenders' challenge to Obama-era consumer protection bureau

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Supreme Court rejects payday lenders' challenge to Obama-era consumer protection bureau
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Supreme Court rejects a conservative challenge to the U.S. agency that protects consumers from financial scams.

The Supreme Court on Thursday upheld the U.S. consumer protection agency that was created under President Obama and congressional Democrats to protect Americans from financial scams. By a 7-2 vote, the justices rejected a constitutional claim brought by a coalition of payday lenders who had won before a panel of three Trump appointees on the 5th Circuit Court of Appeals.

But it has been steadily opposed by much of the lending industry and by many Republicans who say the agency has too much unchecked power. Congressional Democrats who created the bureau tried to shield it from the politics of Washington but that led to problems in the courts. Under the 2010 legislation, the bureau’s director could not be removed by the president for political reasons, and the bureau’s budget was off-limits to Congress’ annual process of appropriations.

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