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July 20, 2017

Lawmakers push resolutions to overturn CFPB's arbitration rule

Republicans on Thursday took the first step toward overturning the CFPB's arbitration rulemaking by introducing resolutions in both the House and Senate under the Congressional Review Act.

Under this act, legislators can overrule new federal regulations with a joint resolution of disapproval within 60 legislative days.

More than 20 Republican senators, including all almost all those sitting on the Senate Banking Committee, filed a resolution on Thursday to repeal the CFPB's rule. Committee Chairman Mike Crapo, R-Idaho, announced the resolution in a press release Thursday.

On the House side, House Financial Services Committee Chairman Jeb Hensarling announced the resolution during a press conference, adding that all Republican members of the panel have signed on. Rep. Keith Rothfus, R-Pa., and subcommittee Chairman Blaine Luetkemeyer, R-Mo., formally introduced the resolution.

The CFPB issued its final arbitration rulemaking last week. The rule prohibits the use of arbitration agreements for the purpose of limiting access to class action litigation. This regulation is effective Sept. 18 with mandatory compliance for pre-dispute arbitration agreements entered into on or after March 19, 2018.