After a few month hiatus, Congress is firing up the Congressional Review Act (CRA), this time to protect a useful tool for resolving disputes.
Earlier this month, the Consumer Financial Protection Bureau (CFPB) went “rogue” and issued a regulation eliminating the option of arbitration. Apparently it prefers letting plaintiff lawyers launch class-action lawsuits.
However, as Sen. Tom Cotton (R-AR) and Rep. Keith Rothfus (R-PA) explain, consumers get the short end of the stick from those:
Thankfully Congress can rectify this and protect arbitration as an effective option for consumers and businesses.
The Congressional Review Act (CRA) gives Congress the chance to repeal federal regulations 60-days after they are put in the Federal Register. So far, this Congress has used the CRA to wipe 14 regulations off the books.
In a letter to the House of Representatives supporting the legislation, the U.S. Chamber explained why it should be repealed:
Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform, and David Hirschmann, president and CEO of the U.S. Chamber Center for Capital Markets Competitiveness praised the House vote:
Now, it’s off to the Senate for the next step in reining in the out-of-controll agency and protecting arbitration as an efficient, cost-effective tool for consumers and businesses.
About the authors
Senior Editor, Digital Content
Sean writes about public policies affecting businesses including energy, health care, and regulations. When not battling those making it harder for free enterprise to succeed, he raves about all things Wisconsin (his home state) and religiously follows the Green Bay Packers.