The Treasury Department on Monday criticized the Consumer Financial Protection Bureau's (CFPB) rule on arbitration, claiming it would impose “extraordinary costs” based on flimsy proof.
In a report released Monday morning, the department argued that CFPB failed to consider cheaper, more effective options for consumers than what it included in the controversial rule.
The report argues that the rule, meant to prevent financial services companies from blocking class-action lawsuits against them, would lead to 3,000 more suits over the next five years. The department claims those class-action suits would impose more than $500 million in legal defense fees, giving $330 million to plaintiffs’ lawyers.
Read more in The Hill.