Trump Set to Sign Arbitration Rule Repeal

Following its razor-thin passage in the Senate last week, President Trump is expected to sign the repeal of the Consumer Financial Protection Bureau’s (CFPB) arbitration rule today after both houses of Congress voted to block the implementation of the rule via the Congressional Review Act. Earlier this week, CFPB Director Richard Cordray penned an open letter to Trump asking him to veto the repeal of the arbitration rule, but his plea is likely to fall on deaf ears. A number of groups representing veterans are also pushing the president to save the rule.

The repeal of the rule comes shortly after the U.S. Department of the Treasury published a report criticizing data inconsistencies in the CFPB’s rulemaking process and demonstrating the potential monetary impact on financial service providers should the rule go into effect. The rule seeks to limit financial service providers’ ability to force arbitration on consumers in a dispute, expanding the option for class-action lawsuits.