President Trump Signs Resolution Repealing CFPB's Arbitration Rule
On Nov. 1, President Trump signed legislation (H.J. Res. 111) repealing the Consumer Financial Protection Bureau’s (CFPB’s) rule on arbitration. On July 10, the CFPB had finalized a rule that would have essentially eliminated the ability for credit unions and other financial institutions to include pre-dispute arbitration clauses in contracts. If implemented, the rule would have led to a significant increase in frivolous and extremely expensive lawsuits against financial institutions.
Fortunately, using the Congressional Review Act (CRA), a 1996 law that allows Congress to disapprove of rules/regulations issued by federal agencies, the House of Representatives, in July, approved H.J. Res. 111, by a vote of 231-190, to repeal the rule. The U.S. Senate passed the repeal measure on September 24th by a vote of 51-50 with Vice President Mike Pence casting the tie breaking vote. The measure was then sent to the President for his signature. Of note, not only does enactment of the resolution using the CRA put an immediate stop to the rule, it also prohibits the CFPB from trying to reissue the same rule or crafting a new one that is substantially similar to it, unless authorized by Congress.
MCUL would like to thank the following members of the Michigan Congressional Delegation for voting in support of H.J. Res. 111:
- Congressman Justin Amash (MI-3)
- Congressman Jack Bergman (MI-1)
- Congressman Mike Bishop (MI-8)
- Congressman Bill Huizenga (MI-2)
- Congressman Paul Mitchell (MI-10)
- Congressman John Moolenaar (MI-4)
- Congressman Dave Trott (MI- 11)
- Congressman Fred Upton (MI-6)
- Congressman Tim Walberg (MI-7)
Please contact Todd Jorns, MCUL’s manager of federal legislative affairs should you have any questions regarding this matter or other federal legislative issues. He can be reached at email@example.com or (734) 793-3445.Go to main navigation