Developments in real estate, debtor-creditor, consumer and credit union/banking law
Monday, October 30, 2017
Senate Vote Overturning Arbitration Ban in Certain Consumer Cases
In July the CFPB issued a rule that banks and credit card companies could not employ contracts which limit their customers to using arbitration to settle any disputes with the bank or credit card company, effectively banning the customers from, among other things, bringing class action law suits. Using the Congressional Review Act, the House and Senate voted to repeal the rule. President Trump has said he will approve the repeal. Needless to say, there are vastly different viewpoints on the repeal, both for and against. Since none of the work I do for lenders involves agreements with arbitration clauses, this does not affect anything I do. However, lenders generally consider that what restrains the CFPB is good for them.