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House Rejects CFPB Arbitration Rule
On Tuesday, July 25, 2017, the House of Representatives passed H.J. Res. 111, a resolution to reject the CFPB’s final arbitration rule under the authority provided by Congressional Review Act, by a vote of 231-190. The companion resolution in the Senate, S.J. Res. 47, has not yet received consideration.
“Today’s House vote is a resounding victory for consumers. Consumers’ access to arbitration, which has long provided a faster, more cost-effective, and higher recovery alternative to class action lawsuits, should not be undermined by a harmful rule resulting from an incomplete study by the CFPB. The Bureau’s own study shows the average consumer receives $5,400 in cash relief when using arbitration and just $32 through a class action suit,” said CBA President & CEO Richard Hunt.
On Monday, CBA led a joint trades letter to Capitol Hill in support of the resolutions. It was signed by the following trade associations: American Bankers Association, American Financial Services Association, Consumer Bankers Association, Consumer Data Industry Association, Credit Union National Association, Electronic Transactions Association, Financial Services Roundtable, Mid-Size Bank Coalition of America, National Association of Federally-Insured Credit Unions, Network Branded Prepaid Card Association, and U.S. Chamber of Commerce.