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Donald Trump signing legislation to repeal Obama-era arbitration rule

President Trump will sign legislation Wednesday afternoon repealing the Consumer Financial Protection Bureau’s mandatory arbitration rule that encouraged class-action lawsuits against banks and credit-card companies.

Mr. Trump is signing the measure despite a personal appeal from CFPB Director Richard Cordray and opposition from some veterans’ groups.

In a letter to the president this week, Mr. Cordray said the rule imposed by his agency “is all about protecting people who simply want to be able to take action together to write the wrongs done to them” by companies such as Wells Fargo and Equinox.

“I think you really don’t like to see American families, including veterans and service members, get cheated out of their hard-earned money and be left helpless to fight back,” Mr. Cordray told the president.

The White House cited a recent Treasury Department report that said the CFPB rule would neither protect consumers nor serve the public interest.

“Under the rule, consumers would have fewer options for quickly and efficiently resolving financial disputes,” the White House said. “Further, the rule would harm our community banks and credit unions by opening the door to frivolous lawsuits by special interest trial lawyers.”

It called the CFPB’s action “uninformed and ineffective.”

Richard Hunt, CEO of the Consumer Bankers Association, said the rule, instead of helping consumers, “was about protecting trial lawyers and their wallets.”

But William Attig, executive director of the Union Veterans Council, joined other veterans’ groups by saying he is “appalled and disheartened” that Mr. Trump is signing the legislation.

“President Trump has chosen the side of big banks and corporate lobbyists over the men and women who fight and bleed for our nation,” he said.

Source: www.washingtontimes.com stories: Politics

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