On November 1, 2017, President Trump signed a joint resolution that repeals the Consumer Financial Protection Bureau’s (CFPB) Arbitration Rule. Congress can undo a rule issued by a federal agency if it passes a resolution repealing it within the first 60 days after the rule is entered into the Federal Register.
History of the Rule
May 3, 2016 – The CFPB issued a proposal of the final rule.
July 10, 2017 – The CFPB issued a final rule restricting the use of arbitration clauses in financial contracts. The final rule prohibited providers from using a pre-dispute arbitration agreement to block consumer class actions concerning any covered consumer financial product or service.
July 19, 2017 – The Rule is published in the Federal Register.
July 25, 2017 – The House voted in favor of repealing the Rule.
October 2, 2017 – The Senate voted in favor of repealing the Rule.
November 1, 2017 – President Trump signed the joint resolution.
The rule had an effective date of September 18, 2017 and a compliance date of March 19, 2018.