October 30th, 2022 by WCBC Radio
CHARLESTON — West Virginia Attorney General Patrick Morrisey on Monday called on the Consumer Financial Protection Bureau to heed the ruling from the U.S. Court of Appeals for the Fifth Circuit “and cease using unconstitutionally appropriated funds.”
That court ruled last week the federal agency, which was formed during the Obama administration and charged with protecting consumers from a wide range of predatory activity by lenders and other financial services, is unconstitutional.
The Attorney General wrote a letter to the director of CFPB.
“I am calling for the agency, just like all federal agencies, to follow the Constitution’s directive,” Attorney General Morrisey said. “The court ruled the agency does not operate in line with basic constitutional limits. It must cease doing ‘business as usual’ given that most of its operating funds are derived from an unconstitutional funding scheme.”
The agency currently gets its funding from the Federal Reserve. If the Circuit Court ruling stands, then the bureau would need to get an annual budget approved by Congress.
“Unless Congress crafts a constitutional appropriations scheme, we see no other alternative but a substantial revision to the scope of the agency’s work,” Attorney General Morrisey wrote in the letter. “In the meantime, this office wants to ensure that your actions are transparent and accountable. We will continue to use all appropriate means to do so.”
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