Congress Moves to Take Away Consumers’ Right to Day in Court
House, Senate launches effort to repeal CFPB rule limiting forced arbitration clauses that block class actions against banks, payday lenders
WASHINGTON, D.C. – Today, Senator Mike Crapo (R-ID) and Congressman Jeb Hensarling (R-TX) announced that the Senate and House have introduced resolutions to use the obscure Congressional Review Act (CRA) to block a new Consumer Financial Protection Bureau (CFPB) rule that would restore critical consumer rights. The CFPB’s rule, released last week, prohibits the use of forced arbitration clauses in financial service contracts with class action bans. Congress now has 60 legislative days to repeal the consumer watchdog’s rule by a simple majority vote.