Vice President Mike Pence cast the tie-breaking vote in the Senate last night in favor of H.J. Resolution 111 that repeals the Consumer Fraud Protection Bureau’s new rule to limit financial institutions’ use of arbitration clauses.
The battle over the Consumer Financial Protection Bureau’s recently published rule banning mandatory arbitration clauses is continuing to pick up steam as the U.S. Senate prepares for a vote later this year that will determine the fate of the rule.
A new rule intended to give consumers greater protection against financial institutions will likely lead to a host of regulatory challenges for community banks, and even more worrisome, potentially costly litigation.
