GOP senator targets consumer bureau arbitration rule for repeal

“The Big Print Giveth and The Small Print Taketh Away”

While the banking industry has criticized the rule, consumer groups, like Consumer Reports, have long opposed forced arbitration clauses and see the rule as an important step for consumers in restoring basic rights in holding financial companies accountable for widespread wrongdoing.

The rule was proposed a year ago under former President Barack Obama, a Democrat who appointed the current director of the CFPB, Richard Cordray.

The Consumer Financial Protection Bureau (CFPB) finalized updates to its mortgage disclosure rules, which include adjustments on the sharing of disclosures with sellers and third parties.

"We are disappointed that the Bureau has made a decision to move forward with a final rule", said Bill Himpler, executive vice president with AFSA. As explained in the Bureau's press release, "g$3 athering these materials will enable the CFPB to better understand and monitor arbitration, including whether the process itself is fair". "The Bureau has ignored its mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act to limit arbitration only if such a prohibition is in the public interest and for the protection of consumers".

Indeed, the rule is largely unchanged from when it was issued in draft form in May 2016 and the agency began soliciting comments from industry.

"We're disappointed that the CFPB has chosen to put class action lawyers - rather than consumers - first with today's final rule, " said Rob Nichols, American Bankers Association president and CEO.

The rule would take effect in 60 days and apply to contracts drawn up 180 days after that.

But that will not stop many institutions from having to rewrite their policies to comply with the new 750-page rule.

Rachel Brand, the third in command at the DOJ, formerly led the litigation arm of the U.S. Chamber, one of the most vocal opponents to the CFPB's proposal previous year.

Gilbert of Public Citizen said there have already been examples of times when mandatory arbitration clauses have hurt consumers, including the case of Charles Beard, a sergeant in the Army National Guard, who was unable to bring a lawsuit against an auto lender while he was on duty in Iraq. But it requires them companies to turn over information about their use of arbitration, including the amounts of awards issued in those proceedings.

The financial industry was dealt a potentially damaging blow this week when a federal consumer regulator moved to allow class-action lawsuits against firms, though there are no guarantees the rule will ever go into effect.

In the buildup to its proposal, the CFPB completed a congressionally mandated study on the use of mandatory arbitration clauses.

Recognizing that problem, the federal agency that controls more than $1 trillion in Medicare and Medicaid funding proposed a rule in September that would have barred any nursing home that gets federal funding from requiring residents resolve disputes in arbitration. While the protections would not apply to existing accounts, consumers could pay off old loans and get new accounts that would fall under the new rules. "MBA looks forward to continuing to work with the CFPB on rules and guidance to provide greater clarity to better protect consumers". "Arbitration has been common practice for decades and provides consumers, employees, and other injured parties with accessible and fair procedures for obtaining redress for claims that can not be vindicated in court".

Related News:

  • Federer Conquers Nerves; Murray, Nadal Up Friday at Wimbledon

    Federer Conquers Nerves; Murray, Nadal Up Friday at Wimbledon

    With twelve Grand Slam singles titles, it is hard to remain the greatest player in the sport for the entirety of a career. He played just one tournament - one on clay at that - in the lead-up to Wimbledon after a first round French Open exit.
    Ben Affleck steps out with a new woman

    Ben Affleck steps out with a new woman

    Affleck and Shookus have been spending time overseas as the Oscar-winner finishes reshoots on the upcoming " Justice League ". Lindsay , 37, was also seen leaving the Argo actor's bachelor pad in Brentwood last month.
    Woman throws coins at plane's engines for luck

    Woman throws coins at plane's engines for luck

    Often you must have seen Indians tossing coins out of a train's window at a river body below when the train passes over a bridge. The pilot told the media that the coins could have inflicted serious damage on the engine if they had not been detected.
  • Kenseth could drive Earnhardt's #88 vehicle  in 2018

    Kenseth could drive Earnhardt's #88 vehicle in 2018

    Jones figures he has learned twice as much in half a Cup season than he did in two years in the Xfinity Series. But I feel we're definitely in the upswing. "Then we switched to qualifying trim, and we were really fast".
    Southern Alberta shaken by Montana quake

    Southern Alberta shaken by Montana quake

    For residents in Spokane, which is the second most-populated city in Washington State , it will be particularly shocking. Reports from Helena, southeast of the quake, mentioned a fairly strong aftershock a few minutes after the first shaker.
    Manchester Airport evacuated after 'suspect item' found

    Manchester Airport evacuated after 'suspect item' found

    It is the smallest terminal at Manchester Airport and is used for domestic flights as well as some flights to the U.S. and Europe. It comes after holidaymakers faced chaos yesterday when the airport's Terminal 1 was evacuated due to a major leak.
  • Rob Kardashian's Lawyer Says He 'Regrets' Posting Blac Chyna's NSFW Photos

    Rob Kardashian's Lawyer Says He 'Regrets' Posting Blac Chyna's NSFW Photos

    Davis also addressed previous claims that Chyna was using the famous family to bring more exposure to her own brand. Each and every time. "I actually have Robert Kardashian blocked from my Instagram ".

    LaVar Ball is the real puppet master

    He wasn't shy about getting his buckets, hitting 12 of his 26 shots while still finding the energy to track down nine rebounds. The sheer variety of how Tatum scores remains his most impressive selling point in summer league.
    John Morgan Sues Florida for Smokeable Medical Marijuana

    John Morgan Sues Florida for Smokeable Medical Marijuana

    But now Morgan says that the Florida legislature has ignored the original goal of the amendment in favor of money and donors. Critics have slammed the idea of smokeable medical marijuana as just another way to legalize recreational marijuana.
  • Harwood Feffer LLP Announces Investigation of ClubCorp Holdings, Inc

    Harwood Feffer LLP Announces Investigation of ClubCorp Holdings, Inc

    Apollo Global Management LLC , a private equity firm, has announced Sunday that it has agreed to acquire ClubCorp Holdings, Inc . Shares have declined about 25 percent since reaching February 21 - the day before ClubCorp reported weak fourth-quarter earnings.
    Federer, Djokovic wonder if Wimbledon courts can improve

    Federer, Djokovic wonder if Wimbledon courts can improve

    Wozniacki will next face 24th-seeded CoCo Vandeweghe of the United States in the next round. A mishit diagonal forehand return gave Federer the mini break on the first point.

    Aston Villa close in on another Premier League signing

    Villa and Hull fans... what do you make of the news? "We will see what develops in the next 24-48 hours". Manager Steve Bruce said: 'We hope to be able to announce something in the next 24/48 hours if we can.


Most liked

No Lonzo Ball, Brandon Ingram, other key Lakers for game vs. Kings
One anonymous National Basketball Association scout went so far as to say he'd be "pissed" if Ball sat out the game for his team. He feels like the media has made a bigger deal of it than it really is and didn't think Ball purposely sat out this game.

Middle-earth: Shadow of Mordor Nemesis Forge Lets You Import Your Nemesis
As added incentive to get into the fray, you can try Shadow of Mordor free for the rest of the week through Xbox One or Steam . Middle-Earth: Shadow of War is coming to Xbox One, Xbox One X, PlayStation 4 , PS4 Pro and PC on 10th October 2017.

Building at Sheffield Children's Hospital fails fire cladding test
The new arrangements are being undertaken with the consent of the new council leadership rather than being imposed. The official death toll prior to this new discovery was 80 and only 21 victims have been formally identified.

Qatar plans to increase gas production despite sanctions
On Monday, Qatar delivered to Kuwait its response to the list of demands issued by the four Arab countries. In 1997, when its first shipment of LNG sailed to Japan, Qatar's exports were valued at around $5bn.

Flower breed named after Modi in Israel
They have marched on regardless of adversity and converted challenges into opportunities. The tides between our talented innovative people is natural.

Aaron Judge and Gary Sanchez to compete in MLB Home Run Derby
The slugger announced on the Yankees' Twitter account on Monday that he would participate in next week's Home Run Derby in Miami. It's a great thing for baseball that we may have a chance to see Judge and Stanton in a possible final for this event.

Earnings Performance Check on General Motors Company (NYSE: GM)
In case of Revenue Estimates, 28 analysts have provided their consensus Average Revenue Estimates for Visa Inc.as 4.36 Billion. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link .

Early mistakes costly for Blue Jays starter Francisco Liriano
We win 11 in a row we're right back in the hunt, and we're not even that far out of the wild card if you look at the numbers". The way things have been going for the Jays at the plate, putting together a lengthy run needs an "if" asterisk attached.

Arrives in Milan ahead of transfer
Hakan Calhanoglu has confirmed he will be joining AC Milan from Bayer Leverkusen in the coming days and is excited for the new challenge in Serie A.

Andy Murray limps with a sore hip, pulls out of Wimbledon warm-up
Federer, now favourite with Murray only third in the betting, warned: "Andy needs to feel he could play for 14 days, or seven matches".

PM Modi 'experiments' for country's betterment: Manjhi on GST rollout
GST, he said, was really a Good and Simple Tax which would just take a little getting used to like every new pair of spectacles. The integration of the Indian economy into a single entity will improve economic efficiency, it said.

Novak Djokovic beats Gael Monfils to claim Eastbourne title
It was the 12-time Grand Slam champion's first grass-court title since winning Wimbledon in 2015 and the 68th title of his career. Djokovic set about putting Monfils under pressure right away and was rewarded with a break in the first game of the match.

My Spidey-Sense Is Tingling! Watch 'The Best Parts: Spider-Man'
He said: "I had my best mate, Harrison, with me through all this and having him with me has been my touchstone to reality". It's going to be the biggest movie of all time . "Putting on the suit is one of the coolest things", he says.

Goodwin Fire Near Mayer Burns More Than 4000 Acres
On the bright side, State Route 69 is re-opened, and the citizens of the town of Mayer have been reunited with their homes. Firefighters are working around the clock battling not only the flames but also brutal heat waves and gusting winds.

Alabama turning over voter names, birthdays, voting history to federal election commission
The voting commission has started to begin its work, with its organizational call this week and a scheduled first meeting July 19. This entire commission is based on the specious and false notion that there was widespread voter fraud last November.