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House Republicans double down on CFPB contempt charges

Joe Mont | August 9, 2017

Republicans on the House Financial Services Committee are escalating their efforts to initiate contempt proceedings against Consumer Financial Protection Bureau Director Richard Cordray.

Cordray, they say, repeatedly ignored a committee subpoena for documentation on the Bureau’s effort to ban mandatory arbitration agreements. Those allegations are detailed in a recently released report that concludes contempt charges are justified.

Mandatory arbitration clauses typically state that either the company or the consumer can require that disputes between them be resolved by privately appointed arbitrators, except for individual cases brought in small claims court. The CFPB’s recent rule, restores consumers’ right to file or join group lawsuits. The rule includes specific language that companies will need to use if they include an arbitration clause in a new contract.

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