Newsroom

July 25, 2017

House votes to overturn CFPB arbitration rule

Voting 231-190, the House on Tuesday passed a resolution expressing disapproval of the CFPB's final arbitration rule, which is currently set to take effect Sept. 18. A similar resolution has been introduced in the Senate but has yet to receive a vote.

"NAFCU appreciates the House taking up this effort in a timely manner," said NAFCU Vice President of Legislative Affairs Brad Thaler. "While NAFCU strongly supports consumer protections, the arbitration rule as written would stand to benefit trial lawyers at the expense of consumers and credit unions."

Under the Congressional Review Act, legislators can vote to overrule new federal regulations with a joint resolution of disapproval within 60 legislative days after regulators have submitted the rule to Congress.

Released in final form earlier this month, the CFPB's arbitration rule prohibits the use of arbitration agreements for the purpose of limiting access to class action litigation. Compliance will be required for pre-dispute arbitration agreements entered into on or after March 19, 2018.