WBA, in conjunction with ABA and other state bankers associations, wrote to House Speaker Paul Ryan and Minority Leader Nancy Pelosi urging them to support a resolution that would overturn the Consumer Financial Protection Bureau’s controversial final arbitration rule.
The resolution -- which was introduced last week by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Rep. Keith Rothfus (R-Pa.) and other members of the committee -- would exercise Congress’ authority under the Congressional Review Act to overturn new federal regulations within 60 days of publication in the Federal Register.
One day later, House lawmakers passed the resolution by a vote of 231 to 190.
The CFPB final arbitration rule -- which was finalized earlier this month -- drastically limits the use of mandatory arbitration clauses for financial products and services, which are frequently used by banks of all sizes to manage the unpredictable costs of class action lawsuits and ensure prompt resolution of disputes. WBA, ABA and other state banking associations have previously pointed out that this could impose a significant burden on customers whose claims cannot be resolved through class actions, as it would require them to go to court for minor, non-systemic disputes.