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.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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