House Passes Repeal of CFPB Arbitration Rule

08/04/17 – The House of Representatives voted to overturn the Consumer Financial Protection Bureau’s (CFPB) new arbitration regulation.

Using the Congressional Review Act (CRA), the House voted along party lines to remove the CFPB’s latest rule governing pre-dispute arbitration.

The CRA allows both chambers of Congress to vote on resolutions of disapproval for regulations within 60 legislative days of the rules being published in the Federal Register. The 231-190 vote was the culmination of weeks of criticism from Congressional Republicans and business groups of the CFPB rule to prohibit class action lawsuit waivers in consumer pre-dispute arbitration agreements. In other words, consumer financial service companies may no longer use arbitration clauses to stop consumers from joining or initiating class action lawsuits.

The measure now must head to the Senate where it only needs a simple majority to pass.  If the President signs the resolution, the CFPB will be barred from formulating a new regulation that looks substantially similar to the one that was nullified unless authorized by Congress to do so.

Law 360 (sub. req.); House Financial Services Committee Press Release.


Consumer Financial Protection Bureau Hosts "Abusive" Symposium

On June 25, the CFPB held a symposium to discuss whether the definition of abusive, as that term is used in the Dodd-Frank Act, should be clarified by a rule or other guidance.

What Banks, Ins. Agencies Need to Know About CA’s New Privacy Law

The CCPA will mandate the most stringent consumer privacy protections in the country. And although the Act contains some exemptions for financial firms, it will undoubtedly affect their operations.

Appellate Courts Split on the Definition of an Autodialer

What exactly is an autodialer? This year, several appellate courts have tried to answer the question, but the most recent decision by the Ninth Circuit has left TCPA litigators and the telemarketing industry more confused than ever before.