Democratic State AGs Urge Senate Leaders To Uphold CFPB's Arbitration Rule

Twenty-one Democratic state attorneys general wrote to Senate leaders Mitch McConnell and Charles Schumer to express their opposition to S.J. Res. 47, which would nullify the Arbitration Rule issued by the Consumer Financial Protection Bureau under the Congressional Review Act. The AGs requested that both senators oppose the Joint Resolution of Disapproval and vote against it.

As we covered here, the CFPB issued a final Rule on July 10, banning arbitration provisions for covered entities, as well as requiring such entities to provide information to the Bureau regarding any efforts to compel arbitration. Subject to certain enumerated exemptions, the Rule applies to most "consumer financial products and services" that the CFPB oversees, including those companies involved with the storage, transmittal or exchange of money, and "affiliates" of such companies when those affiliates act as service providers.