President Donald Trump will sign legislation overturning the CFPB’s mandatory arbitration rule Wednesday afternoon, according to a White House official.
The president’s decision comes despite a personal appeal from CFPB Director Richard Cordray and veterans’ groups, who opposed a congressional vote to overturn the consumer watchdog’s rule using the Congressional Review Act.
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The rule bans forced-arbitration clauses in contracts, making it easier for bank and credit card customers to sue to settle disputes.
A banking industry representative applauded the news.
“The CFPB’s rule was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets,” said Richard Hunt, chief executive officer of the Consumer Bankers Association. “The bureau’s own study backs that up and proves trial lawyers would have been the real winners.”