WASHINGTON–CFPB Director Richard Cordray said it is American consumers who will be the losers following a vote in the Senate to kill the CFPB’s ban on mandatory arbitration clauses required by many financial institutions.
As CUToday.info reported here, the Senate voted to strike down the CFPB prohibition after Vice President Mike Pence cast a vote to break a 50-50 tie. The CFPB rule, which was to go into effect in 2019, had been five years in the marking; both CUNA and NAFCU supported its repeal.
“Tonight’s vote is a giant setback for every consumer in this country,” said Cordray in a statement. “As a result, companies like Wells Fargo and Equifax remain free to break the law without fear of legal blowback from their customers.”