by John Darer CLU ChFC MSSC CeFT RSP CLTC
The Supreme Court of the United States(SCOTUS) upheld the Consumer Financial Protection Bureau funding mechanism defeating a challenge by the payday loan industry
The 7-2 decision on May 16, 2024, authored by conservative Justice Clarence Thomas, reversed a lower 
court’s ruling that the CFPB’s funding design violated the “appropriations clause”, a provision of the United States Constitution that gives Congress the power of the purse. The agency draws money annually from the Federal Reserve instead of from budgets passed by lawmakers.
court’s ruling that the CFPB’s funding design violated the “appropriations clause”, a provision of the United States Constitution that gives Congress the power of the purse. The agency draws money annually from the Federal Reserve instead of from budgets passed by lawmakers.CFPB Tackles Structured Settlement Factoring Malfeasance
The CFPB has previously waded into the structured settlement factoring sandbox exposing the shady Access Funding training manual that referred to mostly black lead paint victims with structured settlements as “lead paint virgins” and taken needed action.
“Access Funding, headquartered in Chevy Chase, Maryland, offered lump sum payments to consumers with structured settlements. Access Funding sought “lead-paint virgins,” which is how it referred to prime targets for transferring their structured settlements stemming from lead-paint poisoning. Access Funding targeted these consumers because they were generally in desperate need of immediate cash and were cognitively impaired. Between 2013 and 2015, Access Funding’s unlawful actions enabled them to profit off about 200 individuals with structured settlements – many of whom suffered the effects of lead-paint poisoning”.
“The parties filed a proposed order which, if entered by the court, would require Access Funding and the executives, Lee Jundanian and Raffi Boghosian, to pay $40,000 in disgorgement and a $10,000 civil penalty, and it would permanently ban them from referring consumers to certain individuals and for-profit entities offering advice on structured settlement transactions”.
The following year the Maryland Attorney General made its own announcement Former Access Funding Chief Operating Officer and Two Lawyers Convicted of Theft from 94 Victims November 9, 2022