WASHINGTON–One day after it was announced, Sen. Tom Cotton (R-AR) said he will use the legislative process to un-do the CFPB’s new ban on mandatory arbitration clauses.
Cotton said he will draft a resolution to allow Congress to eliminate the CFPB plan, which allows consumers to take court action rather than be forced into arbitration, using the Congressional Review Act. Congressional Republicans have already used the Congressional Review Act to roll back a number of Obama Administration regulations.
Should Republicans succeed in passing a challenge using the procedure, the rule would be stopped and the CFPB would be prevented from seeking future similar rules.
In announcing his plan, Cotton accused the CFPB of “going rogue again” and claimed the rule "ignores the consumer benefits of arbitration and treats Arkansans like helpless children, incapable of making business decisions in their own best interests."
Cotton is now seeking a fellow House member to offer a resolution under the Review Act. House Financial Services Chairman Jeb Hensarling (R-TX) has said he supports the House using the Congressional Review Act to stop the rule.