Acting Comptroller of the Currency Keith Noreika today commended Senate lawmakers for stopping the Consumer Financial Protection Bureau’s controversial arbitration rule. The Senate last night exercised its authority to reject the rule under the Congressional Review Act by a vote of 51 to 50, with Vice President Mike Pence casting the tie-breaking vote.
Noreika said that Congress “acted to stop a rule from going into effect that would have likely increased the cost of credit for hardworking Americans and made it more difficult for small community banks to resolve differences with their customers without achieving the rule’s goal of deterring future financial abuse. The action by Congress is a victory for consumers and small banks across the country.”
He also highlighted the recent study the OCC released on the arbitration rule, which found that the rule would have negatively affected the cost of credit for consumers. “By bringing the previously undisclosed data to light, staff ensured a more informed and more transparent discussion of the rule,” Noreika said.