New CFPB Rule Will Harm Consumers

Statement

Congressman Keith Rothfus [PA-12] released the following statement after the Consumer Financial Protection Bureau unveiled its new rule requiring financial companies to limit arbitration clauses in financial contracts:

"This proposed rulemaking is yet another example of rogue bureaucrats at the CFPB abusing their power to the detriment every day Americans," said Congressman Rothfus. "The CFPB is advancing the interests of the powerful trial lawyer lobby, despite strong evidence that resolving financial disputes through arbitration produces faster and more positive results for consumers."

According to the Bureau's own study, a consumer recovers on average $5,389 through arbitration and just $32.35 when participating in a class action suit.

Source