New CFPB Rule Legislates False Data to Help Trial Lawyers

As if further evidence were needed, last week, the Consumer Financial Protection Bureau (CFPB) demonstrated why it needs to be eliminated.  It announced a new rule that, if not overturned, will upend an effective way of addressing consumer claims against financial institutions, potentially flood the courts with cases, and increase costs to customers.  While getting rid of the CFPB may be a long-term project, Congress has a way to swiftly undo this new rule through the Congressional Review Act (CRA).  It should do so before the rule comes into effect. The apparatchiks at the bureau issued a rule that will end the use of mandatory arbitration clauses by companies.  This leftist populism will poorly serve companies and consumers alike.  As the Mercatus Center explained, if a potential customer does not want to make transactions that are governed by a mandatory arbitration clause, he is free to do business with another company.  Absent...(Read Full Article)

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