Today, U.S. Senator Mike Crapo (R-ID) and U.S. Representatives Blaine Luetkemeyer (R-MO) and Keith Rothfus (R-PA), along with several dozen co-sponsors in both chambers, introduced Congressional Review Act (CRA) resolutions repealing the Consumer Financial Protection Bureau’s (CFPB) recently finalized arbitration rule. The rule restores consumer rights to hold banks and lenders accountable in court when they break the law.
“Big banks and other financial entities, like payday lenders, bury ‘rip-off clauses’ in the fine print of contracts to block class-action lawsuits and push disputes into arbitration that often favor big companies,” says NACBA President Jim Haller. “Under the CRA, Congress can pass legislation with a simple majority vote that would strike down this rule within 60 days after it is finalized. If arbitration rules to restore consumer protections are not enacted, corporations will continue to deny consumers their constitutional right to have their day in court.”
NACBA joins other consumer, civil rights, labor, and community groups to strongly support the CFPB’s forced arbitration rule, and opposes any Congressional efforts for repeal.