Washington, D.C. (July 25, 2017) The House of Representatives today voted to pass House Joint Resolution 111 to disapprove of the Consumer Financial Protection Bureau's (CFPB) final rule that prohibits financial service providers from using arbitration.
"The CFPB enacts rules that hurt rural communities, like ours in New Mexico, more than any other. Rather than provide true protections, as originally intended to do, the CFPB works in its own interest without any accountability or transparency. This anti-arbitration rule especially hurts small, rural banks, much like what we have throughout New Mexico, by favoring trial-lawyers at the expense of consumers. I stand up against this rule today so New Mexicans, and people across America, maintain their right to due process as guaranteed under the Constitution," stated Rep. Pearce.
The CFPB's "Arbitration Agreement" rule would prohibit financial service providers from including the private arbitration clause in credit card and bank account contracts. The CFPB released their own study showing that consumers benefit more from arbitration versus those who hire trial lawyers for a class-action lawsuit.
Under the Congressional Review Act, Congress has the ability to overturn recently created federal regulations with a joint resolution passed by both chambers and signed by the President.
- Category: Non-Local News Releases Non-Local News Releases
- Published: 25 July 2017 25 July 2017