Republicans moving to repeal financial rule opposed by banks

Republicans moving to repeal financial rule opposed by banks”

"In moving forward with the rule, the CFPB chose to ignore the results of its own study-which found that consumers fare far better in arbitration-and instead promote class action lawsuits created to benefit trial lawyers at consumers' expense", said Rob Nichols, ABA president and CEO, in a statement.

When he introduced the bill, Cordray told reporters he knew that Republicans in Congress could repeal the rule but insisted it was needed to protect consumers.

The specific issue involves mandatory arbitration clauses in contracts between consumers and financial institutions.

House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said that "as a matter of principle, policy and process, this anti-consumer rule should be thoroughly rejected" after its release.

GOP lawmakers described the rule as a bad deal for consumers but a big win for trial lawyers.

Cordray, a former OH attorney general rumored to be pondering a run for OH governor, said mandatory arbitration clauses force consumers to either give up their complaints of wrongdoing "or go it alone, usually over relatively small amounts that may not be worth pursuing on one's own".

"Forced arbitration gives financial services providers a free pass to get away with abuse", said House Minority leader Nancy Pelosi, California Democrat. "It sadly reflects a Republican party that works relentlessly to empower Wall Street and rig the system against consumers".

"The CFPB's new rule restores the rights of consumers who have been treated unfairly to join with others and seek the relief they deserve in court", he said.

The rule would also require financial institutions to submit to the CFPB redacted copies of arbitration-related records concerning the covered consumer financial products or services, including the initial claim and any counterclaim, the arbitration agreement, and any arbitration award, within 60 days of the date that the record was filed with the arbitrator, arbitral administrator, or court.

Despite the bureau's authority to make financial regulations, Congress can always nullify any new agency rule within a certain number of days through the Congressional Review Act.

The numbers are likely on their side, just as they were earlier this year when Republicans led efforts to upend 14 Obama-era rules. "Repealing the arbitration rule would keep this traditional legal pathway blocked, protecting banks and lenders at the expense of consumers". Before this year, CRA had been successfully used only once, in 2001, to overturn a Clinton-era rule on ergonomic standards.

Like this



26 July 2017
Putin, Iraqi Vice President Maliki Meet Near St. Petersburg
Putin said during the talks that Moscow and Baghdad "have a great deal yet to do" to strengthen bilateral economic cooperation.

26 July 2017
Wal-Mart Stores, Inc. (NYSE:WMT) Stake Maintained by Grimes & Company Inc
It turned negative, as 97 investors sold WMT shares while 540 reduced holdings. 77 funds opened positions while 479 raised stakes. Wal-Mart Stores, Inc. ( WMT)'s Bullish picture have been built after taking the consideration of last five trading activity.

26 July 2017
Israel Removes Metal Detectors From Around al-Aqsa Mosque
As we reported, a spokesman for Netanyahu denied any relationship between the diplomatic standoff and the metal detectors. Muslim worshippers have stayed away from the sacred compound since Israel installed metal detectors there last week.

26 July 2017
What's the issue with metal detectors in Jerusalem?
Jordan wanted to bring the guard in for questioning, but Israel said he had diplomatic immunity under the Vienna Convention. They are usually ejected by Israeli police , but Palestinians feel the status quo is changing.

26 July 2017
Financial Advisory Service Inc. Has $326000 Position in Starbucks Corporation (SBUX)
Following the sale, the director now directly owns 24,000 shares of the company's stock, valued at approximately $1,455,120. The coffee company reported $0.45 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.45.

26 July 2017
Kumba Iron Ore reinstates dividend after H1 profit jump
However, Mkhwanazi said there had been a pleasing improvement in productivity. That was in line with what the company had flagged to the market.

26 July 2017
Venezuela's opposition party calls for two-day strike
Venezuela's opposition blames Maduro for Venezuela's economic crisis and plans a general strike for Wednesday and Thursday. President Donald Trump, Maduro has vowed the vote will go ahead despite "imperial" pressure.

26 July 2017
Stock Update & Outlook Report on Exxon Mobil Corporation (NYSE:XOM)
It turned negative, as 58 investors sold XOM shares while 851 reduced holdings. 98 funds opened positions while 244 raised stakes. Want to see what other hedge funds are holding XOM? Oakbrook Invs Lc holds 144,959 shares or 0.86% of its portfolio.

26 July 2017
Claret Chug: Jordan Spieth Lets Loose After Bringing Home The Open
And it's so hard in that situation to believe that, but just having just the slightest bit of belief in it makes you so confident. But it wasn't, and Spieth did ask the question of referee JR Jones, a respected official, and he used the answer to his benefit.

26 July 2017
Death penalty for Pandher, Koli in Pinki Sarkar case
Koli has been sentenced to death for six other murders related to the house, and faces similar charges in nine more instances. However, after taking stock of arguments from both sides the court awarded death sentence to both the accused persons.