CFPB officially rescinds arbitration rule
The CFPB today published its action in the Federal Register to remove the bureau’s final arbitration rule from the federal code, effective immediately. The notice comes after President Donald Trump signed a congressional joint resolution disapproving of the rule earlier this month.
Released in July, the CFPB’s final arbitration rule would have prohibited the use of clauses that prevent consumers from entering into class action litigation, so-called “class action waivers.”
Under the Congressional Review Act, legislators can vote to overrule new federal regulations with a joint resolution of disapproval within 60 legislative days after regulators have submitted the rule to Congress. The House passed the resolution disapproving of the arbitration rule in July, and the Senate passed the resolution at the end of October.
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