Today’s Vote in the House Would Overturn Consumer Bureau Rule That Protects Consumers Against Forced Arbitration Clauses
WASHINGTON, D.C. – Today, the House voted to approve H.J. Res. 111, a Congressional Review Act (CRA) bill that would repeal the new Consumer Financial Protection Bureau (CFPB) rule on forced arbitration. The rule, finalized earlier this month, prohibits banks from taking advantage of consumers by denying them a day in court and forcing them to bring any grievances to a secret arbitration court where big banks call the shots.
“Once again, big-bank funded Republicans in Congress are prioritizing the interests of Wall Street donors over working people. Repealing this Consumer Bureau protection would give banks free rein to force Americans into secret, back-room arbitration courts where big business holds the upper hand and consumers hardly stand a chance,” said Karl Frisch, executive director of Allied Progress.
He continued, “As this issue moves on to the Senate, we will make sure Americans know where their lawmakers stand – on the side of consumers or with big banks and Wall Street special interests. Senators are about to start hearing from their constituents on this issue. They better listen.”
The push to repeal the Consumer Bureau’s new rule limiting bank-favored forced arbitration was sponsored by Rep. Keith Rothfus (R-PA) in the House. The bill will now move to the Senate, where companion legislation is sponsored by Sen. Mike Crapo (R-ID). Crapo and Rothfus have notably taken $3,612,761 from big banks and other financial institutions during their careers according to the Center for Responsive Politics. An analysis by Public Citizen reveals the 24 legislators sponsoring or co-sponsoring the repeal effort in the Senate have taken more than $100 million from the financial sector over the course of their careers.
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