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CFPB’s Cordray pleads with President Trump to spare arbitration ban

Joe Mont | October 31, 2017

With President Trump’s pen poised to seal the fate of the Consumer Financial Protection Bureau’s rule banning mandatory arbitration clauses in contracts for financial products and services, Director Richard Cordray made a bold, last-minute gambit: a direct plea for clemency.

On Oct. 25, the Senate voted to eliminate the embattled rule. Vice President Mike Pence broke what was a 50-50 split, largely along party lines. Only two Republicans voted against the repeal, South Carolina’s Lindsey Graham and John Kennedy of Louisiana. The House of Representatives had already voted in favor of the repeal earlier this year.

The CFPB’s rule, enacted in July, restored consumers’ right to file or join group lawsuits. Companies can still include arbitration clauses in their contracts, but may not use arbitration clauses to stop consumers from being part of a...

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