Senate Republican Kicks Off Attempt to Gut CFPB Arbitration Rule

Divide between financial regulators appointed by Trump Obama widens

Divide between financial regulators appointed by Trump Obama widens

However, unlike some of those other quickly moving rules, the arbitration rule will have a widespread and costly impact to both consumers and financial firms. CFPB Director Richard Cordray is an Obama appointee and holdover from the previous administration.

The rule restricts financial companies from using mandatory arbitration clauses to head off class-action lawsuits.

The Arbitration Rule would apply primarily to consumer products, that is, a financial product or service offered to consumers primarily for personal, family, or household purposes (e.g., residential mortgages) or provided in connection with such product (e.g., credit life or disability insurance).

The new rule will enforce the consumer's right to take part in group lawsuits with the body hoping it will promote more transparency and accountability for large companies. Proponents of the rule, including the CFPB, say it will discourage illegal activity and ensure consumers can "have their day in court", but critics say arbitration is better for consumers because it's faster, cheaper and leads to higher individual payouts.

"Driving dispute resolutions into class actions is probably harmful to consumers rather than helpful to consumers, so I just believe that we need to have a much more effective tool to address concerns that are raised with arbitration", Crapo said. Providers will be required to report to the CFPB: 1) any court or arbitration filings that reflect that a party relied on a pre-dispute arbitration agreement entered into on or after the compliance date; 2) communications from an arbitrator to the provider that reflect the arbitrator's determination that a pre-dispute arbitration agreement does not comply with the arbitrator's due process or fairness standards; and 3) communications from an arbitrator to the provider regarding a dismissal of or refusal to administer a claim due to the provider's failure to pay required filing or administrative fees. Indeed, consumers in arbitration ended up paying more restitution to Wells Fargo than the other way around.

Fitbit (NYSE:FIT) Receiving Somewhat Positive Media Coverage, Analysis Finds
According to analysts Fitbit Inc (NYSE:FIT)'s minimum EPS for the current quarter is at $-0.16 and can go high up to $-0.08. Also, Director Steven Joseph Murray sold 500,000 shares of the company's stock in a transaction on Friday, May 26th.

Sign this petition so Congress hears you loud and clear: Keep the CFPB arbitration rule and protect our right to challenge corporate wrongdoers in court. By stopping new rules through the Congressional Review Act, Congress also prevents agencies from issuing "substantially similar" regulations in the future.

In the coming weeks and months, expect to hear vocal opposition from the financial services industry and vigorous statements of support from consumer advocacy groups.

The CFPB rule finally limits this fine-print trick that big banks, predatory lenders, and other financial companies use to put themselves above the law.

The arbitration rule goes into effect 60 days after it's published in the Federal Register. Tom Cotton, R-Ark., in the Senate and Rep. Jeb Hensarling, R-Texas, in the House - who are working to either get rid of the CFPB entirely or render it toothless.

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