Federal Spotlight: House votes to repeal arbitration rule

July 27, 2017

The House of Representatives voted on Tuesday to strike down a ruling issued by the Consumer Financial Protection Bureau (CFPB) that eliminated the option of arbitration for businesses and consumers. The vote was 230-191. The CFPB, which was established under the Obama Administration, issued the regulation earlier this month. It would have made it easier for plaintiff attorneys to file class action lawsuits. Consumers typically receive very little from these kinds of suits and would also lose out by not being able to use arbitration if they believe there have been abuses. The measure now heads to the Senate where it will only need a majority to pass because the rule is being scrutinized under the Congressional Review Act. The White House has signaled that they are supportive of the measure. Read more from The Washington Times.