Cotton Statement on Senate Vote to Repeal the CFPBs Arbitration Rule
Contact: Caroline Rabbitt Tabler (202) 224-2353
Washington, D.C. - Senator Tom Cotton (R-Arkansas) today released the following statement on the Senate vote to repeal the Consumer Financial Protection Bureau's arbitration rule:
"This is good news for the American consumer. A ban on arbitration clauses would very likely have resulted in lower reward payments for wronged customers and higher credit costs for everybody. There's little evidence to suggest that class-action lawsuits actually stop the behavior they seek to punish, and there's plenty of evidence to show they give the lion's share of money to the lawyers who file them. This rule was wrong on the merits and, worse, an abuse of authority by the CFPB. The repeal of this regulation is a good first step toward reining in a rogue agency."