Senate and House lawmakers on Thursday (July 20) separately unveiled bills that each proposes to overturn a recent rule by the Consumer Financial Protection Bureau, which blocks companies from using arbitration clauses to stop consumers from bringing class action lawsuits.
Republican lawmakers argue the CFPB's own study shows consumers get more money in their pockets when they use arbitration as opposed to hiring expensive class action trial lawyers. The average payout for consumers in a class action case is $32, while the average trial lawyer receives nearly $1 million, Rep. Jeb Hensarling, chairman of the House Financial Services Committee, told reporters, referencing the CFPB's study.
Rep. Maxine Waters blasted the move by Republicans, saying it was "outrageous" to wipe out a rule at the detriment of consumers. "Republicans should think twice before taking away consumers' rights to be heard in a court of law," said Waters.
More information available at CNN.