In an indication that the House will take quick action to nullify the CFPB’s arbitration rule, the chamber’s Rules Committee will meet Monday evening to approve a rule for debate on the resolution to void the rule.
Consideration by the Rules Committee is the last step before the resolution goes to the House floor.
Since the House’s August recess begins at the end of next week, the House needs to approve the resolution next week or wait until after Labor Day.
The CFPB rule was published Wednesday. It prohibits financial institutions from using arbitration agreements to keep consumers from being part of a class action suit.
Congressional Republicans oppose the idea and are trying to nullify the rule through the Congressional Review Act.
A CRA challenge takes only 51 votes to pass in the Senate—unlike much legislation, which requires 60 votes to pass in the polarized Senate. A resolution to void the rule has been introduced in the Senate, but no action has been scheduled.
House passage is more urgent since the Senate’s recess will not begin at the end of next week.
Congress must act within 60 days on a resolution filed under the CRA.
