Congress passed an ICBA-supported resolution to nullify the Consumer Financial Protection Bureau’s rule prohibiting consumer arbitration agreements. The 51-50 Senate vote, which included a tie-breaking vote from Vice President Pence, sends H.J. Res. 111 to President Trump to be signed into law. The House approved the resolution in July.
ICBA strongly opposed the CFPB rule and worked with Senate Banking Committee Chairman Mike Crapo (R-Idaho) to advance a legislative fix. In a comment letter last year, ICBA noted that the bureau’s own research indicates arbitration offers a better process and outcomes for consumers than class actions.
The Senate vote follows a months-long ICBA grassroots campaign that has generated nearly 2,000 community banker letters to members of Congress. ICBA thanks community bankers for making their voices heard on this crucial legislation.
Following the vote, ICBA applauded Congress for moving swiftly to preserve community banks’ contractual right to pursue fair and timely resolution through arbitration and avoid costly and time-consuming litigation. “Community banks’ livelihood depends on their fair and equitable treatment of customers,” ICBA said.
Read ICBA Release >