By Jeff Bater
Consumer Financial Protection Bureau Director Richard Cordray asked President Donald Trump Oct. 30 to support an arbitration rule after its rejection by Congress.
The five-paragraph letter made an unusual personal appeal for Trump to veto the congressional resolution against the rule.
“You and I have never met or spoken, but I am aware that over the course of your long career in business you often found it necessary to go to court when you thought you were treated unfairly,” Cordray wrote. ”Of course, most Americans cannot afford to do this on their own, so they have to band together to be able to fight companies like Wells Fargo that opened millions of fake accounts or Equifax when it allowed sensitive personal data to be breached for more than 145 million Americans.”
Senate Republicans Oct. 24 pushed through a reversal of CFPB restrictions on mandatory arbitration in a 51-50 vote. Vice President Mike Pence was called in to cast the tie-breaking vote on H.J. Res. 111, which was sent to the White House. The Senate’s move followed a similar vote by the House in July.
The White House issued a statement after the Senate vote saying that by repealing the rule, “Congress is standing up for everyday consumers and community banks and credit unions, instead of the trial lawyers.”
The CFPB rule finalized in July restricts banks and other lenders from forcing customers to resolve disputes through arbitration, potentially making it easier for consumers to sue their banks in class actions.
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To contact the editor responsible for this story: Michael Ferullo at MFerullo@bna.com
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