Senate and House File Resolution Disapproving of CFPB Arbitration Rule

Today, Republican Members of Congress in both the Senate and House have introduced a resolution to nullify the the Consumer Financial Protection Bureau's (CFPB) arbitration rule. The resolution, introduced by Rep. Keith Rothfus (R-PA) in the House and Sen. Crapo (R-ID) in the Senate, uses the Congressional Review Act (CRA) to overturn an agency rule within 60 legislative days after an agency has submitted the rule to Congress.

"Members of Congress previously expressed concerns with the proposed version of the rulemaking – concerns that were not addressed in the final rule," said Chairman Crapo. "The rule is based on a flawed study that leading scholars have criticized as biased and inadequate, noting that it could leave consumers worse off by removing access to an important dispute resolution tool. By ignoring requests from Congress to reexamine the rule and develop alternatives between the status quo and effectively eliminating arbitration, the CFPB has once again proven a lack of accountability. Given the problems with the study and the Bureau's failure to address significant concerns, it is not only appropriate but incumbent on Congress to vote to overturn this rule."

The resolution will need a simple majority in both Chambers to pass. SFIG remains opposed to the CFPB's arbitration rule and continues to engage on the issue for the reasons laid out in our prior comment letter to the CFPB.

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