CFPB Finally Acknowledges Arbitration Rule “Has No Force or Effect”
Two weeks after President Trump signed H.J. Res. 111, the joint resolution passed by the House and Senate disapproving the CFPB arbitration rule, the CFPB has formally acknowledged Congress’ override of the rule under the Congressional Review Act. The following notice is now posted at the head of the section of the CFPB’s website dealing with the arbitration rule:
“On Nov. 1, 2017, the President signed a joint resolution passed by Congress disapproving the Arbitration Agreements Rule under the Congressional Review Act (CRA). Pursuant to the joint resolution, the Arbitration Agreements Rule has no force or effect. The materials relating to the Arbitration Agreements Rule on the Bureau’s website are for informational purposes only.”
This is a fitting epitaph for a rule that was misconceived from the outset. We assume the CFPB will publish a similar notice removing the arbitration rule from the Code of Federal Regulations, although we have not seen such a notice yet.