A group of 11 trade associations have sent a letter to members of Congress expressing their “strong disapproval” of the CFPB’s final arbitration rule and urging Congress to pass the resolutions introduced in the House and Senate that provide for Congressional disapproval of the rule under the Congressional Review Act. (The House resolution, H.J. Res. 111, was passed yesterday by the full House.) The trade associations include the American Bankers Association, American Financial Services Association, Consumer Bankers Association, Financial Services Roundtable, and U.S. Chamber of Commerce.
In the letter, the associations discuss the following reasons for their disapproval of the arbitration rule:
- The CFPB’s arbitration study is incomplete and the data that was accumulated, and conclusions based on that data, does not support the rule
- The rule is contrary to the public interest and fails to enhance consumer protection
- The rule enriches trial attorneys at the expense of consumers