Rep. Keith Rothfus [R-Pa.] today introduced a resolution in the House of Representatives to repeal the CFPB’s proposed arbitration rule, which would ban class-action waivers in financial services products.
The resolution seeks to utilize the Congressional Review Act to overturn the rule. It was cosponsored by all 34 Republican members of the House Financial Services Committee.
“The CFPB’s anti-arbitration rule hurts consumers and it’s another example of the problems caused by this rogue and unaccountable agency,” Rep. Rothfus said. “We know that consumers get better results through arbitration than through class action lawsuits. Despite the fact that the agency acknowledged this fact in one of its own reports, the bureaucrats at the CFPB have decided they know better. The CFPB’s rule eliminates this effective process for consumers, and will punish consumers with decreased access to financial products, increased costs for such products, or both.”
The move was applauded by fellow Republicans.
“As a matter of principle, policy, and process, this anti-consumer rule should be thoroughly rejected by Congress, and I applaud Congressman Rothfus for leading the effort in the House to do just that,” said Rep. Jeb Hensarling [R-Texas], chairman of the House Financial Services Committee. “In the last election, the American people voted to drain the D.C. swamp of capricious, unaccountable bureaucrats who wish to control their lives. I can think of no better example of such bureaucrats than those at the CFPB. This CRA is a critical step towards fulfilling our promise to the American people and truly protecting consumers.”
Yesterday, Sen. Tom Cotton [R-Ark.] said in a speech before the U.S. Chamber of Commerce that he will “do all I can do to repeal this regulation in the next three weeks before the congressional recess, and when we return in September, I’m going to continue to fight to reform the CFPB.”
Even other federal regulators are asking the CFPB to hold off. The Office of the Comptroller of the Currency has requested the CFPB delay implementing the rule, a request that the agency did not grant.
