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House passes repeal of CFPB Arbitration Rule

Wed, Jul 26, 2017

The House voted Tuesday to repeal the Arbitration Clause rule from the Consumer Financial Protection Bureau (CFPB). The rule pertained to consumer financial products like credit cards and bank accounts that have arbitration clauses in their contracts that prevent consumers from joining together to sue their bank or financial company for wrongdoing.

Lawmakers voted 231-190 to repeal the rule using the Congressional Review Act, a law that allows Congress to eliminate regulations within 60 days of their release and bars agencies from issuing similar rules in the future. The resolution was supported by Republican Senators Tom Cotton (R-Arkansas), Mike Crapo (R-Idaho), and House Financial Services Committee Chairman Jeb Hensarling (R-Texas).