Congress Sets Aside CFPB RuleBy
Congress set aside a rule from the Consumer Financial Protection Bureau that banned financial companies from using mandatory arbitration clauses to deny groups of people their day in court.
The impact of the rule would have been severe for small financial entities, and small businesses would have been forced to pay 25% more for credit, according to the Office of the Comptroller of the Currency. That’s because banks would have to spend money fending off lawsuits encouraged by trial lawyers. Congress can set aside federal rules using the Congressional Review Act.
Both the House and Senate passed GOP-supported resolutions, the latter acting at the end of October 2017 by a narrow 51-50 vote.