Rounds Joins Colleagues in Filing Resolution Disapproving of CFPB Arbitration Rule
WASHINGTON—U.S. Sen. Mike Rounds (R-S.D.), a member of the Senate Banking Committee, today joined 22 of his colleagues in filing a Congressional Review Act (CRA) Joint Resolution of Disapproval in the Senate against the Consumer Financial Protection Bureau’s (CFPB) arbitration rule.
“The arbitration agreements rule is yet another example of the CFPB overstepping its authority to impose burdensome, unnecessary regulations that do more harm than good,” said Rounds. “If finalized, this rule would actually cost consumers more in the long run by pushing consumers into class action lawsuits as opposed to arbitration. According to the CFPB’s own studies, consumers receive, on average, $32 in relief through class action lawsuits compared to $5,389 in arbitration. Additionally, Office of the Comptroller of the Currency has said that this rule could increase the risk of litigation so much that it could adversely affect the safety and soundness of the banking system – the cost of which will ultimately be handed down to consumers."
The Congressional Review Act permits Congress to overturn an agency rule within 60 legislative days after an agency has submitted the rule to Congress, with a simple majority vote.
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