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House Votes to Overturn CFPB's Arbitration Rule

Posted on 7/26/2017

House lawmakers yesterday voted to overturn the Consumer Financial Protection Bureau's controversial final arbitration rule by a vote of 231 to 190, exercising their authority under the Congressional Review Act to reject new federal regulations within 60 legislative days of publication in the Federal Register.

Leading the effort in the House were House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Rep. Keith Rothfus (R-Pa.), and other members of the House Financial Services Committee. A similar measure has been introduced in the Senate by Banking Committee Chairman Mike Crapo (R-Idaho).

The 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.

NDBA would like to thank Congressman Cramer for his vote to overturn the rule.

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