Rep. Tom Graves, chairman of the House Appropriations Financial Services Subcommittee, released the following statement after joining President Trump yesterday for the signing ceremony of H.J.Res. 111, which stops the Consumer Financial Protection Bureau’s (CFPB) rule on “Arbitration Agreements”:
“This is a big win for consumers. The arbitration rule was another misguided regulation by the Obama administration that hurt the very people it intended to help. I believe the inevitable result of the rule was an explosion of lawsuits that would simply become a big payout for trial lawyers while doing nothing to help consumers.
“This is why the CFPB should be subject to routine congressional oversight, where it’s accountable to the American people. I included a CFPB oversight provision in my fiscal year 2018 Financial Services Appropriations bill, and I will continue working to make it law.”
The CFPB’s rule on “Arbitration Agreements” attempted to push disputes between consumers and financial companies into the courts by banning these companies from including clauses in their contracts requiring settlement through arbitration.
In a recent study, the Treasury Department found the average consumer gains little from class action lawsuits, while trial attorneys receive huge payouts. In fact, the average award for consumers in a class action lawsuit is only $32. At the same time, the average trial lawyer receives nearly $1 million.