Senate Pair Working to Allow Secret Courts Where Big Banks Call the Shots, Have Taken Millions from Banks and Financial Industry
After Failing to Accomplish Much Else, Congressional Republicans May Try to Roll Back Important Consumer Protections Before August Recess
WASHINGTON, D.C. – Politico reported today that Senators Mike Crapo (R-ID) and Tom Cotton (R-AR) are plotting to undo important consumer protections before skipping town for the August recess. The senators say they will use a Congressional Review Act resolution to reverse a 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. If the Republican duo is successful, consumers will be forced to take their complaints to secret arbitration courts where the powerful financial institutions that wronged them call the shots.
“Once again Senate Republicans are attempting to gut important consumer protections and give Wall Street more power. Big banks like Wells Fargo shouldn’t be allowed to force their customers into secret, back-room arbitration courts where they stack the deck in their own favor and make it nearly impossible for consumers to succeed,” said Karl Frisch, executive director of Allied Progress.
He continued, “Why on earth would Senators Crapo and Cotton go to such lengths to gut this important rule that protects the constitutional rights of every single one of their constituents? Perhaps their decisions are rooted in the millions of dollars they have taken from banks and financial interests over the years.”
According to the Center for Responsive Politics, Sen. Cotton has taken $2,121,086 in campaign contributions from banks and other financial interests over the course of his career, while Sen. Crapo has taken $2,859,891. Sen. Cotton stated that he hopes to complete a rollback of the arbitration rule before the August recess.
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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