The justices rejected a business-backed argument that could have hobbled the Consumer Financial Protection Bureau, which protects people from unlawful financial services practices such as predatory lending.
The Supreme Court on Thursday rejected a business-backed challenge that could have scuttled the federal agency set up to protect consumers from shady financial services practices.
The court in a 7-2 vote ruled that the funding structure of the Consumer Financial Protection Bureau (CFPB), which allows the agency to be funded directly by the Federal Reserve, is constitutionally sound.
In doing so, the court rejected claims brought by two trade groups representing lenders, which argued that the agency had to be funded by annual appropriations approved by Congress.
