President Donald J. Trump officially nullified the Consumer Financial Protection Bureau's ("CFPB") arbitration rule by signing H.J. Res. 111. The U.S. House of Representatives voted to approve a resolution in July. The Senate voted on the resolution in October.
The rule was adopted by the CFPB in order to restrict mandatory arbitration clauses in certain consumer financial contracts. Recently, the U.S. Department of the Treasury released a report criticizing the rule and the CFPB's review process. The report asserted that the CFPB gave inadequate consideration to the potential impact of the rule.
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