by Jeff Sovern
Allison blogged earlier about CFPB Director Cordray's letter to the president urging him to allow the CFPB arbitration rule to go into effect. While it would be wonderful if the president did so, there are many reasons to think he won't. Among these: as regular readers will know, Vice President Pence broke the tie in the Senate against the rule and the Treasury Department opposed the rule. In addition, after the Senate passed the resolution blocking the arbitration Rule, the White House issued a statement praising the Senate action. I've pasted it in below. Perhaps the statement was written by White House aides without consultation with the president, though it purports to describe the president's view of the resolution. Or perhaps Cordray's letter will change the president's mind. We can but hope. Anyway, here is the statement.
Statement Regarding Senate Passage of H.J. Res. 111
President Donald J. Trump applauds the Congress for passing H.J. Res. 111, Disapproving of the Consumer Financial Protection Bureau's (CFPB) Arbitration Agreements Rule. According to a recent report by the Department of the Treasury, the evidence is clear that the CFPB's rule would neither protect consumers nor serve the public interest. Rather, under the rule, consumers would have fewer options for quickly and efficiently resolving financial disputes. Further, the rule would harm our community banks and credit unions by opening the door to frivolous lawsuits by special interest trial lawyers. By repealing this rule, Congress is standing up for everyday consumers and community banks and credit unions, instead of the trial lawyers, who would have benefited the most from the CFPB's uninformed and ineffective policy.