Today, Acting Comptroller of the Currency Keith Noreika issued a statement on the CFPB’s arbitration rule after the Office of the Comptroller of the Currency missed a Saturday deadline to petition the Financial Stability Oversight Council to try and delay the rule from taking effect.
According to Noreika, the CFPB has not cooperated with the OCC’s request for the data and analysis the Bureau used to support and develop its final arbitration rule. In his press release, Noreika stated, “Unfortunately, since the CFPB published the rule in the Federal Register prior to providing its data for our analysis and we have requested additional data in order to conduct a thorough review, the OCC cannot complete our thorough review in the limited time before a petition must be filed with the Financial Stability Oversight Council (FSOC), pursuant to Section 1023 of the Dodd-Frank Act.”
Despite the fact that the OCC will not petition the FSOC to stay the effective date of the rule, Noreika continued to express his objections to the rule stating, “Nothing so far diminishes my concerns that the rule may adversely affect the institutions within the federal banking system and their customers. The final rule prevents banks from using an effective risk mitigation tool and will eliminate one option consumers have to resolve their concerns without the cost and delay of litigation.”
Noreika concluded his statement by declaring his support for currents efforts to nullify the rule using the Congressional Review Act. Noreika said, “I hope Congress will act on this opportunity to preserve effective alternatives for consumers to resolve their disputes without lengthy and costly litigation and to reduce the “piling on” of legal and regulatory burden.”
OCC spokesman Bryan Hubbard mentioned that the OCC’s economists will continue to analyze the data that the CFPB used in its arbitration study and will try to verify the CFPB’s conclusions.
The arbitration rule, which was published in the Federal Register on July 19, 2017, is scheduled to take effect in March 2018.
GOP lawmakers have threatened to kill the rule using the Congressional Review Act, which requires a simple majority vote to overturn within 60 legislative days. It remains unclear whether Republicans have the necessary votes or time on the legislative calendar.