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  • A court just ruled that CFPB's funding is unconstitutional, and that could be 'catastrophic' for mortgage markets

    10/28/2022 11:03:45 AM PDT · by EBH · 33 replies
    CNBC ^ | 10/28/22 | Stephanie Dhue
    A court tossed out a regulation written by the Consumer Financial Protection Bureau for payday lenders last week, saying the agency's funding was unconstitutional and that it, therefore, lacked the ability to curb the industry. The U.S. Court of Appeals for the Fifth Circuit voided a CFPB rule that prohibited payday lenders from debiting the accounts of customers who miss a payment without getting their consent first. While the ruling applied just to that regulation, financial service attorneys say it muddies the agency's authority and has the potential to upend all of its rules. "The Fifth Circuit's ruling potentially calls...