Arbitration Rule Overturned by Senate

On October 24th, the Senate voted 51-50 to strike down the Consumer Financial Protection Bureau’s new Arbitration Rule, with Vice President Mike Pence casting the tie-breaking vote. Back in July the House of Representatives also rejected the Arbitration Rule. The Arbitration Rule would have prohibited financial institutions from including mandatory arbitration provisions in contracts. The fate of the Arbitration Rule is now in the hands of the President, who is expected to sign the law which kills the rule.

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John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

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