Senator Begins Process To Rescind CFPB Arbitration Rule

July 13, 2017

Senate Banking Committee member Tom Cotton said he is moving to block the Consumer Financial Protection Bureau’s (CFPB) new final rule clamping down on financial companies’ use of arbitration, writes Law360.

Senator Cotton called the final ruling an “anti-business regulation” that will hurt consumers and prompt frivolous lawsuits. In a statement, the Senator said he has started the process of rescinding the rule using the Congressional Review Act, which creates a window of time for lawmakers to roll back certain new federal agency regulations with simple majority votes and presidential approval.

“The bureau’s new rule on arbitration clauses ignores the consumer benefits of arbitration and treats [citizens] like helpless children, incapable of making business decisions in their own best interests,” Cotton concluded.