CHARLESTON — West Virginia Attorney General Patrick Morrisey is calling on the federal 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.”
In a ruling last week, that court said 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.
Morrisey wrote a letter October 24 to CFPB Director Rohit Chopra.
“I am calling for the agency, just like all federal agencies, to follow the Constitution’s directive,” Morrisey wrote in the letter. “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.”
Currently, the CFPB gets its funding from the Federal Reserve. If the Circuit Court ruling stands, the CFPB 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,” 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.”