CFPB rule bans use of arbitration clauses to stop class actions; Republican lawmaker vows fight
Author:Neil Haggerty

In Brief

The US Consumer Financial Protection Bureau banned companies from using mandatory arbitration clauses to prevent consumers from filing class actions, setting the stage for a Republican-led battle in Congress to roll back the new rule. Both House Financial Services Committee Chairman Jeb Hensarling and the US Chamber of Commerce said they would encourage lawmakers to consider blocking the rule through use of the Congressional Review Act. 

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