This story appeared in Bank Digest.
The House of Representatives voted 231-190 on July 25 to block the Consumer Financial Protection Bureau's rule banning mandatory predispute arbitration clauses in certain consumer financial product and service contracts if those clauses prevent class actions. The resolution of disapproval (H.J. Res. 111) used authority provided under the Congressional Review Act and also would prevent the CFPB from issuing a similar rule in the future.
In remarks on the House floor, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said the CFPB had "joined forces in an unholy alliance" with the trial lawyers lobby to "specifically deprive consumers of a low-cost, easy way to resolve legal disputes that can be accomplished without hiring trial attorneys." But in a statement issued after passage of the resolution, Financial Services Committee Ranking Member Maxine Waters (D-Calif) said, "Republicans have shamefully moved to nullify the Consumer Bureau's good work, in a move that ultimately enables financial institutions to get off the hook when they commit wrongdoing, with less redress for consumers."