by Jeff Sovern
Category Archives: Consumer Financial Protection Bureau
by Jeff Sovern In keeping with Justice Gorsuch's remark yesterday that "Democracy depends on our ability to learn from & work with those who hold very different convictions than our own," here is a partial report on the activities of arbitration supporters: The Chamber of Commerce is holding an event titled CFPB's Anti-Arbitration Rule: Analysis […]
by Jeff Sovern Under the Congressional Review Act, Congress will have 60 legislative days to overturn the rule. The rule can also be blocked by the FSOC, and for that to happen, an FSOC member must file a petition within ten days of publication of the rule. Given the opposition of Acting Comptroller of the […]
In the Daily Kos, Paul has written Settlement Shows Why Congressional Republicans Want to Let Banks Use Forced Arbitration. Excerpt: [R]oughly 1/3 of the customers impacted by US Bank’s illegal actions had signed an arbitration clause when they entered into a conditional sale contract with their car dealer. The arbitration clause included a provision that […]
Here. Excerpt from their statement: The mission of the CFPB, created in 2010 to shield consumers from shady industry practices, is extremely popular, with 74 percent of voters backing its work. The poll shows majority support from Democrats (85 percent), Republicans (66 percent), and Independents (77 percent). The Dodd Frank reforms writ large are supported […]
by Jeff Sovern The Office of the Comptroller of the Currency has a long history of being captured by the banks it regulates, interrupted briefly during the Obama administration. But now that it is headed by Acting Comptroller and former bank lawyer Keith Noreika, it is once more protecting banks from predatory consumers. First Norieka […]
by Jeff Sovern On a party line vote of 31-21, the House Appropriations Committee passed the Financial Services Appropriation bill. Section 930 of the bill repeals the CFPB's authority to regulate arbitration. Section 926 would subject the CFPB to the congressional appropriations process, thereby making it more accountable to lobbyists. Section 927 would gut the […]
by Jeff Sovern My latest, here. Excerpt: The Wells Fargo case shows the difference between arbitration and class actions: the difference between getting nothing and getting something. * * * Critics of the rule claim that class actions are just giveaways to lawyers. It’s true that not all class actions work as well as the Wells […]
In the SF Chronicle. The indefatigable Ted teaches consumer law at Berkeley. Here is his conclusion: So why did Director Cordray [issue the Arbitration Rule despite opposition from the powerful financial lobby]? Maybe he believes that the American people know a sharp practice when they see one, and that they won’t stand for the undoing […]
by Jeff Sovern Yesterday, according to The Hill, Senator Tom Cotton of Arkansas, announced that he would seek to block the CFPB's Arbitration Rule using the Congressional Review Act, saying: “The Bureau’s new rule on arbitration clauses ignores the consumer benefits of arbitration and treats Arkansans like helpless children, incapable of making business decisions in […]