Category Archives: Arbitration

American Banker: New Wells scandal harms effort to nix CFPB arbitration rule

by Jeff Sovern Last week, Gretchen Morgenson at the Times broke the story of how hundreds of thousands of auto loan borrowers at Wells Fargo had been charged for car insurance they didn't need. Now Kate Berry at the American Banker reports on the arbitration connection: it turns out that many of the contracts provide […]

Poll Finds Republican Voters Support CFPB, Tougher Financial Rules, Oppose Forced Arbitration,

by Jeff Sovern Republican pollster Robert Carpenter has written Republicans beware: Your voters like tough rules on Wall Street in the Washington Examiner. Excerpt: Republicans do the bidding of Wall Street at their own peril. That is the message of a new poll that I helped conduct around financial reform and consumer protection last month […]

Want to Know How Much Money Supporting Arbitration Is Worth to Members of Congress?

Then take a look at this story from the Pulitzer Prize-winning Center for Public Integrity: Who is killing the CFPB’s arbitration rule? Excerpt: The financial industry’s hefty investment in the campaigns of House members appeared to pay off this week when that chamber voted to kill a new rule that allows consumers to file class-action lawsuits […]

House Reported to Vote to Consider Blocking CFPB Arb Rule on Party Line Vote

by Jeff Sovern This is based on Fred O. Williams's story at CreditCards.com.  The vote was 229 to 184, though he seems to indicate that this was the final vote. I think it was just on the vote to consider the bill.  Williams's article, titled DIY credit card arbitration: You may be able to opt out, […]

Compass Point Estimates 60% Chance of Congress Using CRA to Block CFPB Arb Rule

From Politico's Morning Money newsletter: Compass Point analyst Isaac Boltansky on what’s next — "We now peg the odds of the mandatory arbitration rule being reversed through the [Congressional Review Act] at 60 percent. The House will easily clear the measure, but the whip count in the Senate is still fluid at this juncture and […]

House Vote on CRA Resolution on CFPB Arbitration Rule Could Come Tuesday

by Jeff Sovern The House Rules Committee is meeting today at 5:00 to consider granting a rule for the House to take up H. J. Res. 111, under which the House would vote to block the CFPB arbitration rule from taking effect.  I hear the House could vote on the resolution itself tomorrow.

House Financial Services Committe Minority Staff Issues Report on CFPB

The report is titled THE CONSUMER FINANCIAL PROTECTION BUREAU IN PERSPECTIVE. Quoting now from the findings listed in the Executive Summary: Before the Consumer Bureau was created, financial regulators prioritized the profits of Wall Street firms at the expense of consumers’ financial well-being on Main Street. Previously, Federal prudential regulators were tasked with dual, and […]