Magazine article American Banker

Cordray's Personal Appeal to Trump: Save the Arbitration Rule

Magazine article American Banker

Cordray's Personal Appeal to Trump: Save the Arbitration Rule

Article excerpt

Byline: Ian McKendry

WASHINGTON -- Consumer Financial Protection Bureau Director Richard Cordray urged President Trump Monday to veto a congressional measure invalidating the bureau's arbitration rule.

The Senate narrowly approved using the Congressional Review Act to overturn the regulation, with Vice President Mike Pence casting the tiebreaking vote. The CFPB rule would have required banks to remove arbitration clauses that prevent consumers from filing class-action lawsuits.

"The resolution is now before you to decide whether it will stand or fall," Cordray wrote of the rule in a letter to Trump.

The letter comes as Republicans in Congress and the administration continue to criticize CFPB policies under Cordray, and amid speculation that GOP leaders have discussed how to remove him. Cordray himself is said to be considering resigning to run for governor of Ohio.

Cordray noted that the two men "have never met or spoken" and that "many have told me I am wasting my time writing this letter." Yet he insisted that the rule would help consumers correct wrongs through the legal process.

"This letter is not about charts or graphs or studies," Cordray wrote. "Instead, it is simply a personal appeal to you, asking you to uphold this rule."

The House passed similar legislation in July with a wider margin than in the Senate. Sens. Lindsey Graham, R-S.C., and John Kennedy, R-La., had defected from the rest of the caucus, leaving the Senate locked in a 50-50 tie. …

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