H.R. Resolution 111, CRA Joint Resolution Disapproving the CFPB Anti-Arbitration Rule

H. J. Res 111 CRA Joint Resolution Disapproving the CFPB Anti-Arbitration Rule

Mr. Speaker, a few weeks ago, the Consumer Financial Protection Bureau implemented their most recent arbitration rule. While this rule claims consumer protection, it does the very opposite. It will cost Americans more of their hard-earned money and time.

The CFPB is arguably the most powerful, yet unaccountable, government agency in United States history.

By intentional design, the CFPB is not accountable to Congress or the taxpayer.

According to the D.C. Circuit, the unelected CFPB director, Richard Cordray, "possesses more uni-lateral authority than any single commissioner or board member in any other independent agency in the U.S. government."

What does this mean exactly? It means that no one is checking the director's actions. The CFPB is able to evade all limits and restraints proposed by the government.

Because of this, Director Cordray is only looking out for one person – himself. The CFPB chose to ignore their own study because the results did not fit the narrative they were trying to impose on Americans.

This study showed that the average consumer receives five-thousand, four-hundred dollars in cash relief when using arbitration as opposed to an inadequate thirty-two dollars through class action suits.

In addition, the study concluded that the use of arbitration produced a higher recovery rate and shorter timeline for the consumer.

Regardless of this study, Director Cordray has refused to acknowledge that taxpayers will feel the immediate damage that comes from limiting their options by being forced to pay more for less.

Bottom line, this is just another example of overregulation by the CFPB. Taking away the option of arbitration will hurt all Americans.

Mr. Speaker, I commend Representative Keith Rothfus for leading the way on this much-needed CRA. I encourage all my colleagues to join us in repealing this harmful rule and ensuring the Bureau is not able to issue any similar rule relating to arbitration.