Last week, Republicans on the House Financial Services Committee introduced a “resolution of disapproval” to override the CFPB’s arbitration rule which bans financial services companies from including mandatory class action waivers in consumer contracts.
Yesterday afternoon, the full House of Representatives voted 231-190 to pass H.J. Res. 111, which provides for Congressional disapproval under the Congressional Review Act (CRA) of the CFPB’s final arbitration rule. The vote was split along party lines, with one Republican joining the Democrats in voting against repealing the rule.
Yesterday’s vote was an early step to undo the Bureau’s rule that is widely opposed by Republicans and the financial services industry.
Under the CRA, Congress may overturn regulations issued by federal agencies by enacting a joint resolution of disapproval within 60 legislative days from the date the rule is published in the Federal Register. The arbitration rule was published in the Federal Register on July 19, 2017.
A disapproval resolution faces tougher prospects in the Senate where Republicans cannot afford to lose more than two GOP votes to get the measure passed (assuming all Democratic Senators oppose the resolution). According to reports, several Republican Senators are undecided on how they will vote. Legislation has already been introduced in the Senate but a vote is not expected to take place until September.