Breaking: Senate Votes to Repeal CFPB Arbitration Rule
10/25/17 – The New York Times reports that the Senate has voted 50-50, with Vice President Mike Pence as the tie breaker, to reject the Consumer Financial Protection Bureau’s Arbitration Rule that was issued last summer.
According to the New York Times, the Senate voted on Tuesday to strike down the rule that would have prevented financial firms offering services to consumers from using pre-dispute arbitration agreements to block consumers from starting or joining class action lawsuits. The House voted to repeal the rule earlier this year, in July.
Under the Congressional Review Act, Congress has 60 legislative days after a rule is issued to pass a resolution that disapproves of the rule. If both chambers pass the resolution and the Presidents sign it, the rule is nullified.
The resolution now goes to President Donald Trump for his signature, who is expected to sign it.
M&L will provide more information and analysis in the days to come.