Senator Lankford Supports CRA to Stop Arbitration Rule
WASHINGTON, DC — Senator James Lankford (R-OK) today joined Senate Committee on Banking, Housing and Urban Affairs Chairman Mike Crapo (R-ID) and Republican colleagues to file a Congressional Review Act (CRA) Joint Resolution of Disapproval in the Senate against the Consumer Financial Protection Bureau’s (CFPB) arbitration rule.
“Federal agencies cannot create new regulations at their own discretion,” said Lankford. “The arbitration rule adopted by the CFPB is another example of a rogue federal agency circumventing Congress with a rule that burdens the American people with yet another costly regulation. A CRA is necessary to hold the CFPB accountable for a rule that will harm consumers rather than protect them.”
“Members of Congress previously expressed concerns with the proposed version of the rulemaking – concerns that were not addressed in the final rule,” said Crapo. “The rule is based on a flawed study that leading scholars have criticized as biased and inadequate, noting that it could leave consumers worse off by removing access to an important dispute resolution tool. By ignoring requests from Congress to reexamine the rule and develop alternatives between the status quo and effectively eliminating arbitration, the CFPB has once again proven a lack of accountability. Given the problems with the study and the Bureau’s failure to address significant concerns, it is not only appropriate but incumbent on Congress to vote to overturn this rule.”
The Congressional Review Act permits Congress to overturn an agency rule within 60 legislative days after an agency has submitted the rule to Congress, with a simple majority vote.
Original cosponsors of the measure include Senators John Barrasso (R-WY), Roy Blunt (R-MO), Shelley Moore Capito (R-WV), Thad Cochran (R-MS), Bob Corker (R-TN), Tom Cotton (R-AR), Ted Cruz (R-TX), Mike Enzi (R-WY), Orrin Hatch (R-UT), Dean Heller (R-NV), Johnny Isakson (R-GA), James Lankford (R-OK), Jerry Moran (R-KS), David Perdue (R-GA), Mike Rounds (R-SD), Marco Rubio (R-FL), Ben Sasse (R-NE), Tim Scott (R-SC), Richard Shelby (R-AL), Luther Strange (R-AL), Thom Tillis (R-NC), Patrick Toomey (R-PA) and Roger Wicker (R-MS).