Last week, the U.S. Senate voted 51 to 50 to repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule – with Vice President Mike Pence providing the tie-breaking vote. The rule was structured to ban mandatory arbitration clauses in financial contracts and had been a key issue closely watched by many ATPC member companies.
The Senate used the Congressional Review Act, or CRA, to overturn the rule, which was released in July and dealt with banks, credit unions and other lenders resolving disputes with customers. Prior to the Senate’s approval, the House had passed similar legislation.
The bill was sent to President Trump’s desk, who signed it into law on November 1st. This is a major win for the payments industry as it is for the financial services industry overall.
You can read more about the Senate’s decision and the positive impact on the industry in American Banker, here.