Both sides are digging in, as an effort to repeal a rule published by the Consumer Financial Protection Bureau heads for the U.S. Senate. The CFPB rule, which was published in July, severely limits lenders’ ability to compel consumers to submit disputes to binding arbitration instead of taking disputes to court, and makes it easier for consumers to file class-action lawsuits. Binding arbitration is a common provision in auto loans. Supporters of the CFPB say binding arbitration denies consumers their “day in court.” The recent Equifax data breach added fuel to the fire, since consumer advocate groups such as Americans for Financial Reform say that binding arbitration would prevent consumers from filing a class action suit in the matter. The group consists of the U.S. Chamber of Commerce, the American Bankers Association, the American Financial Services Association, the Consumer Bankers Association, the Financial Services Roundtable, and a coalition of trade associations located throughout Texas.

Source: Forbes September 30, 2017 21:46 UTC