The Dodd-Frank financial law in 2010 mandated CFPB study arbitration, as arbitration clauses appeared in tens of millions of contracts. That effort produced a 728-page report, released in March 2015, that challenged longstanding assumptions about arbitration.
For decades, arbitration clauses derailed claims of financial gouging, discrimination in car sales, unfair fees, and deceptive business practices. More and more companies adopted the clauses. Today, mandatory arbitration is a condition of actions as diverse as opening a checking account, renting a car, getting cable service or checking a loved one into a nursing home.
Appointed by President Obama in 2012, Mr. Cordray’s tenure at the bureau is ending. Then President Trump will install his own appointee, a move expected to neuter one of the financial industry’s most aggressive regulators.
The vote was a win for a party struggling to deliver on its party’s priorities. Last month, Senator Mitch McConnell of Kentucky, the majority leader, again failed to draw the support needed to overturn the Affordable Care Act, President Barack Obama’s signature health care law.
The vote late Tuesday left many Democrats dismayed. Senator Sherrod Brown, Democrat of Ohio, said the Republicans had betrayed ordinary Americans.
By voting to take rights away from customers. The Senate voted tonight to side with Wells Fargo lobbyists over the people we serve.”
The measure now heads to President Trump, who is expected to sign it.