The House Subcommittee on Financial Institutions and Consumer Credit reviewed a recent proposal from the Consumer Financial Protection Bureau ("CFPB") that would prohibit mandatory arbitration clauses in many consumer financial contracts. The hearing focused on whether or not the proposed rule is "in the public interest and for the protection of consumers" pursuant to Dodd-Frank Act Section 1028.
Financial Services Committee Chair Jeb Hensarling (R-TX) argued against the proposal, asserting that it "essentially hands over the keys of the CFPB's luxury office building to the wealthy, powerful, and politically well-connected trial lawyer lobby."
Witnesses at the hearing included:
- Professor Jason S. Johnston, Henry L. and Grace Doherty Charitable Foundation Professor, University of Virginia School of Law (TTF);
- Mr. Dong Hong, VP and Regulatory Counsel, Consumer Bankers Association (TTF);
- Mr. Andrew Pincus, Partner, Mayer Brown, LLP, on behalf of the U.S. Chamber of Commerce (TTF); and
- Mr. F. Paul Bland, Jr., Executive Director, Public Justice (TTF).
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