Why are Congressional Republicans Pushing to Allow Secret Arbitration Courts Where Banks Reign?
Sen. Mike Crapo (R-ID) and Rep. Keith Rothfus (R-PA) File Companion Bills to Repeal Consumer Bureau’s Arbitration Rule
The Duo Have Taken More than $3 Million from Big Banks and Financial Interests
WASHINGTON, D.C. – Today, Republican members of the U.S. House and Senate introduced Congressional Review Act (CRA) bills to repeal the new Consumer Financial Protection Bureau (CFPB) rule on forced arbitration, which empowers consumers that banks and other companies have taken advantage of by reaffirming an individual’s constitutional right to have their day in court. Allied Progress released the following statement from its executive director, Karl Frisch:
“The Consumer Bureau’s new rule restoring the constitutional right of consumers to take banks and other financial institutions to court when they have been wronged was a major victory for all Americans,” said Karl Frisch, executive director of Allied Progress.
He continued, “The new Republican-led effort in the House and Senate puts the power back in the hands of Wall Street and the big banks – essentially establishing secret arbitration courts where big business has the advantage and consumers hardly stand a chance.”
“If these politicians are successful, many financial misdeeds will go completely unreported. I dare them to look Wells Fargo customers in the eye and tell them they shouldn’t be allowed to go to court, that they should be forced into some back room where the bank calls the shots,” he concluded.
The push to repeal the Consumer Bureau’s new rule limiting bank-favored forced arbitration is being led by Mike Crapo (R-ID) in the Senate and Rep. Keith Rothfus (R-PA) in the House. All told, Crapo and Rothfus have taken $3,612,761 from big banks and other financial institutions during their careers according to the Center for Responsive Politics.
To speak with Karl Frisch about the arbitration rule, please contact Tucker Middleton at 202-644-8526 or tucker@alliedprogress.org.
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