President Trump will sign on Wednesday a resolution repealing the Consumer Financial Protection Bureau (CFPB) rule on forced arbitration, a White House aide told The Hill on Tuesday.
Trump has been widely expected to sign the resolution repealing the rule, which bans banks and credit card companies from blocking customers from suing them in class-action lawsuits. The House passed a Congressional Review Act resolution to repeal the rule in July, which the Senate approved two weeks ago.
{mosads}Trump will sign the resolution Wednesday joined by the heads of banking and financial services trade groups that opposed the arbitration rules, according to three lobbyists familiar with the plans.
Republicans and business groups promised to kill the arbitration rule within hours of its release, insisting it would limit cheaper, easier options for customers to resolve conflicts with banks and credit card companies.
“The CFPB’s rule was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets,” said Consumer Bankers Association President Richard Hunt.
“I would like to thank the Administration and those in Congress who worked to ensure consumers have the necessary tools to receive relief without going through costly, drawn-out class action proceedings.”
Democrats and progressive groups have long called for action on forced arbitration, which they say denies defrauded customers of basic constitutional rights. The CFPB rule was the most ambitious regulatory effort to do so.
CFPB Director Richard Cordray wrote what he called a “simple, personal appeal” to Trump on Monday, asking him not to sign the repeal resolution.
“Many have told me that I am wasting my time writing this letter — that your mind is made up and your advisors have already made their intentions clear,” Cordray wrote.
“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,” he wrote.