New Bank Loan Regulations on Arbitration Clauses
Earlier this month, Richard Cordray, Director of the Consumer Financial Protection Bureau, announced a new set of rules concerning arbitration clauses in bank loans.
The new regulations would not eliminate all arbitration clauses, but it would eliminate clauses that made it impossible for victims to form class action suits.
The Normal Expected Cries Were Heard
Consumer advocates said that it was about time, and banking officials/congress/US Chamber of Commerce all said that the laws would destroy the financial industry as we know it today.
CFPB has been studying this situation for a long time. However, they must feel a little like Sisyphus and his rock. The House is waiting with the Congressional Review Act poised and ready to lock and load.
The Laws Will Be Effective On March Of 2018
The CRA can be used to delete regulations anytime within 60 days of the effective dates. With their large majority in the House, the Republicans led by Jeb Hensarling will surely use CRA to push the stone back over the hill.
You would not believe this stuff if it were in a movie. Wells Fargo will be happy for CRA.