Trump Signs Legislation to Repeal Obama-Era Arbitration Rule

The Washington Times quoted Iain Murray on the need for Congress to disapprove of the CFPB’s egregious rule against small dollar loans. 

President Trump signed legislation Wednesday afternoon repealing the Consumer Financial Protection Bureau’s mandatory arbitration rule that encouraged class-action lawsuits against banks and credit card companies.

Mr. Trump signed the measure despite a personal appeal from CFPB Director Richard Cordray and opposition from some veterans’ groups. Business and trade groups generally praised the move.

“Arbitration is a simpler, flexible, and faster process than turning to the courts to settle an issue between consumers and financial companies,” said Jason Oxman, CEO of the Electronic Transaction Association, which represents more than 500 payments and technology companies. “The rejection of the anti-arbitration rule is an important win for consumers and the U.S. economy.”

Richard Hunt, president and CEO of the Consumer Bankers Association, said the CFPB’s rule “was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets.”

“The CFPB’s own study backs that up and proves trial lawyers would have been the real winners had this rule gone into effect,” Mr. Hunt said.

Competitive Enterprise Institute financial policy specialist Iain Murray urging similar action against the CFPB payday-lending rule.

“Using impartial, third-party arbitration as a cost-effective form of dispute resolution keeps access to credit open and affordable,” Mr. Murray said. “The next step for Congress is to disapprove the CFPB’s even more egregious rule against small dollar loans, which will kill access to needed credit for millions of less well-off Americans.”

Read the full article at The Washington Times.