The CFPB’s Arbitration Rule has been sent to the President’s desk to join 14 other federal agency regulations that have been repealed under the Congressional Review Act (CRA). The disapproval resolution, which was passed by the House in July, was passed by the Senate late in the evening on October 24. The rule would have prohibited companies from using class action waivers in arbitration agreements.
Restraints on the CFPB Revisiting the Arbitration Rule
Under the CRA, the resolution of disapproval nullifies the finalized Arbitration Rule and prohibits the reissuing of the rule in substantially the same form. The CRA also prohibits the issuing of a new rule that is substantially the same unless that new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule under the CRA.