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Equifax Breach Could Jeopardize Repeal of CFPB Arbitration Rule

Mon, Sep 11, 2017

While two House committees look at holding hearings on the Equifax breach, the effort to repeal the CFPB Arbitration rule may be in jeopardy.

Senator Elizabeth Warren, sent out this tweet Friday afternoon:

“The CFPB’s new rule would stop companies like Equifax from avoiding legal accountability like this -- as long as GOP doesn't reverse it.”

The CFPB issued a statement objecting to the inclusion of an arbitration clause on the site that Equifax established for individuals to check if they're affected. To accept the service, users had to agree to arbitration in any dispute that rose above the monetary limit of a small-claims court.

The CFPB stated, "It is troubling that Equifax is forcing people to waive legal rights in order to receive fraud monitoring after the company's breach put their personal information at risk. Equifax could remove this clause so that consumers can receive this service without condition."

Over the weekend, Equifax withdrew the arbitration language from the site. 

With Senate Democrats uniformly opposed to repealing the Arbitration rule, Senate Banking Committee Chairman Mike Crapo can only afford to lose two Republican votes. Lindsay Graham has already indicated he won’t support the repeal, and moderate Republicans appear wary of it – particularly considering the optics of the Equifax breach.