Congressional Review Act

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a new rule that would make it easier for consumers to bring class action lawsuits against financial institutions. The new rule bans financial institutions from using mandatory arbitration clauses in consumer contracts to prevent and avoid class action lawsuits. If the new rule goes into effect, it would apply to all new contracts involving consumer financial products and services, such as credit cards, bank accounts, and auto leases. The rule does not cover consumer mortgages because Congress already prohibits arbitration agreements in the residential mortgage market.