In-Depth: Sponsoring Rep. Keith Rothfus (R-PA) introduced this bill to repeal the CFPB’s arbitration rule, which prevents financial firms from requiring consumers to sign mandatory arbitration agreements:

“The CFPB’s anti-arbitration rule hurts consumers and it’s another example of the problems caused by this rogue and unaccountable agency. We know that consumers get better results through arbitration than through class action lawsuits. Despite the fact that the agency acknowledged this fact in one of its own reports, the bureaucrats at the CFPB have decided they know better. The CFPB’s rule eliminates this effective process for consumers, and will punish consumers with decreased access to financial products, increased costs for such products, or both.”

Rep. Maxine Waters (D-CA) defended the CFPB’s rule:

“The Consumer Bureau’s forced arbitration rule ensures that consumers are not required to sign away their legal rights in order to open a bank account, obtain a credit card, finance a car, or obtain a private student loan… The rule is important for consumers and there is no sound public policy rationale for repealing it. It is outrageous that Republicans are trying to nullify the rule to the detriment of consumers. Republicans should think twice before taking away consumers’ rights to be heard in a court of law.”

This legislation has the support of 33 Republican cosponsors in the House.

Media:

• House Financial Services Committee Press Release
  
• Morning Consult
  
• Washington Examiner
  
• Consumer Bankers Association (In Favor)
  
• Heritage Foundation (In Favor)
  
• National Association of Consumer Bankruptcy Attorneys (Opposed)