Photo: Diego M. Radzinschi/ALM
Pincus is considered likely to lead any legal challenge to the arbitration rule. But that court challenge may not be necessary.
After the CFPB issued the final rule on July 10, GOP lawmakers including Sen. Tom Cotton and U.S. Rep. Jeb Hensarling, chairman of the House Financial Services Committee, almost immediately called for Congress to mount a challenge under the Congressional Review Act—a legislative tool that Republicans have wielded so far this year to wipe out more than a dozen Obama-era regulations.
At the chamber event Wednesday, Cotton said he believes every Republican member of the Senate banking committee will co-sponsor a Congressional Review Act resolution to undo the CFPB’s arbitration rule. With Wednesday’s publication of the rule in the Federal Register, Congress has a 60-legislative-day window to challenge the rule.
Cotton said he plans to “do all I can to repeal this regulation in the next three weeks of this congressional session.”
“Since President Trump came into office, Congress has used [the Congressional Review Act] 14 times to repeal midnight Obama regulations,” Cotton said. “And that’s our plan now.”
