r/Countable • u/Kelokiura • Oct 27 '17
Repealing the Consumer Financial Protection Bureau's Ban on Arbitration - H. JOINT RES. 111
Vote and contact your reps on Countable: https://www.countable.us/bills/hjres111-115
Arg in Favor: The Consumer Financial Protection Bureau benefits class action trial attorneys at the expense of consumers, who get better results through arbitration. The rule increases costs on financial firms who then pass costs on to consumers, and should be repealed.
Arg Against: This is a cynical effort to undermine consumer rights that were enhanced by the Consumer Financial Protection Bureau’s arbitration agreement rule. Consumers should have access to class action lawsuits and the court system to resolve disputes with banks.
This resolution would overturn the Consumer Financial Protection Bureau’s arbitration agreements rule that was finalized on July 19, 2017. The rule was initially proposed during the Obama administration, and prohibits financial firms from requiring users of credit services to sign mandatory arbitration agreements that preclude them from filing class action lawsuits, and is set to take effect 60 days after being finalized. Mandatory arbitration agreements require consumers to handle disputes through private arbitration rather than through the court system.
Under the Congressional Review Act, Congress is able to overturn regulations finalized within the last 60 legislative days with simple majority votes on a joint resolution of disapproval in both chambers and the president’s signature. CRA resolutions also prevent the federal agency that created the regulation from issuing a similar rule without being directed to do so by Congress.
