Another One Bites The Dust - The President Kills The CFPB Arbitration Rule

As expected, President Trump signed the resolution to repeal the arbitration rule proposed by the Consumer Financial Protection Bureau (CFPB). The resolution effectively nullified the CFPB's rule restricting the rights of financial institutions to include arbitration clauses in their contracts. Under the proposed rule, financial institutions would have had to re-draft their consumer agreements to carve out an exception in pre-dispute resolution clauses and to permit consumers to join class actions. The rule also required financial institutions to regularly supply information about customer disputes to the CFPB. For now, companies can table such redrafting and return to business as usual.