WASHINGTON–Saying he’s been told he’s “wasting his time,” CFPB Director Richard Cordray has nonetheless sent a letter to President Trump urging him to veto a bill repealing the CFPB’s ban on arbitration clauses.
"This letter is not about charts or graphs or studies. Instead, it is simply a personal appeal to you, asking you to uphold this rule," Cordray wrote in the letter. "Many have told me I am wasting my time writing this letter -- that your mind is made up and that your advisors have already made their intentions clear," he said. "But this rule is all about protecting people who simply want to be able to take action together to right the wrongs done to them."
Despite the letter, most analysts expect the president to sign the bill, which will allow financial institutions to require customers/members resolve disputes in arbitration, rather than through the courts and class action suits. Following the Senate’s passage of the bill—after the House earlier did so—the White House issued a statement that the “CFPB's rule would neither protect consumers nor serve the public interest."
In his letter, Cordray sought to frame his position by saying Trump should view the bill through the lens of his business experience.
"I am aware that over the course of your long career in business you often found it necessary to go to court when you thought you were treated unfairly," he said. "Of course, most Americans cannot afford to do this on their own, so they have to band together to be able to fight companies."
Cordray went on to call Trump a "smart man" and referenced members of the military, who Trump sees as among his top supporters.
"I think you really don't like to see American families, including veterans and service members, get cheated out of their hard-earned money and be left helpless to fight back," Cordray wrote.