Congressman Roger Williams

Representing the 25th District of Texas

Congressman Williams Statement on the CFPB’s Failed Arbitration Rule

Jul 11, 2017
Press Release

WASHINGTON, DC – Congressman Roger Williams (R – Austin), vice chair on the Subcommittee on Monetary Policy and Trade on the House Committee on Financial Services, released the following statement Tuesday in response to the Consumer Financial Protection Bureau’s (CFPB), final arbitration rule:


“Once again, the CFPB ignored their own study because the results did not fit the narrative they were trying to impose. In order for the Bureau to initiate a new regulation, it must be in the ‘public interest and [created with the objective of protecting our] consumers.’ However, while this arbitration rule claims consumer protection, it will do nothing except cost them more of their hard-earned dollars and time. The CFPB’s own study shows the average consumer receives $5,400 in cash relief when using arbitration as opposed to an inadequate $32 through class action suit. In addition, the study concluded that the use of arbitration produced a higher recovery rate and shorter timeline. Despite this, Director Richard Cordray refuses to acknowledge that limiting our consumers’ choices is hurting them. This rule is another example of overregulation by the CFPB and I strongly encourage my colleagues in Congress and President Trump to act fast by reforming this agency.”

 

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