Following up on our earlier alert (July 20, 2017), we note that on Tuesday, July 25, 2017, the House of Representatives rejected the Consumer Financial Protection Bureau’s (“CFPB”) rule banning mandatory arbitration in certain financial services contexts. Introduced by Rep. Keith Rothfus (R-PA), the resolution nullifies the CFPB rule, and was passed 231-190, mostly on party lines. See In a statement, Rep. Rothfus said: “According to the CFPB’s own study, the average recovery for members of a class action lawsuit is a paltry $32, contrasted with the average $5,389 recovery for consumers who use arbitration.  If we want to help ensure consumer recoveries and justice – and we all do – depriving them of efficient and effective arbitration is not the answer.  Sadly, that is precisely what will result from the CFPB’s misguided, anti-consumer rule.” See The resolution now moves to the Senate.

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