In a victory for CUNA and credit unions, the Senate voted Tuesday to in favor of a resolution to repeal the Consumer Financial Protection Bureau’s arbitration rule under the Congressional Review Act. With the House approving the resolution of disapproval in July, H.J. Res. 111 will now go to President Donald Trump for his signature, expected in the coming days.
“We’re grateful that the Senate, and the House, recognized that the CFPB's arbitration rule did not benefit credit unions members,” said CUNA President/CEO Jim Nussle. “This rule ignored the different size and member-ownership structure of credit unions and instead treated them as akin to abusive Wall Street banks. The CFPB's rule encourages credit union members to act against their own best-interest by engaging in costly class action litigation which depletes the resources of the membership as a whole and instead benefits trial lawyers most. This rule was just the latest example of the one-size-fits-all rulemaking coming from the CFPB and thankfully Congress acted to remedy the situation.”
The CFPB’s rule, finalized in July, would have restricted the use of pre-dispute arbitration clauses. Stopping the rule is a victory for CUNA’s Campaign for Common-Sense Regulation, launched earlier this year to see common sense regulations enacted.