Yesterday, the United States House of Representatives voted 231 to 190 to repeal a new Consumer Financial Protection Bureau (“CFPB”) rule that prohibits most financial service providers such as banks and credit card issuers from requiring consumers to sign mandatory arbitration agreements that bar class-action lawsuits. The rule was published in the Federal Register on July 19th and is currently scheduled to become effective 60 days later. The full text of the new arbitration rule is also available on the CFPB’s website.
As mentioned in a prior Disputing blog post, Republican lawmakers began working to kill the rule as soon as it was issued. In order to undo the measure prior to implementation, the House reportedly invoked the Congressional Review Act. The Act allows lawmakers to overrule newly enacted federal regulations by passing a joint resolution. House Joint Resolution 111 must be approved by the Senate and signed by the president before the CFPB’s arbitration rule is officially repealed.
Stay tuned to Disputing for more on this topic!