82 FR 55500 - Arbitration Agreements

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 82, Issue 224 (November 22, 2017)

Under the Congressional Review Act, Congress has passed and the president has signed a joint resolution disapproving a final rule published by the Bureau of Consumer Financial Protection (Bureau) on July 19, 2017, to regulate arbitration agreements in contracts for specified consumer financial products and services. Under the joint resolution and by operation of the Congressional Review Act, the arbitration agreements rule has no force or effect. The Bureau is hereby removing it from the Code of Federal Regulations (CFR).

[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Page 55500]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25324]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1040

[Docket No. CFPB-2016-0020]
RIN 3170-AA51


Arbitration Agreements

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; CRA revocation.

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SUMMARY: Under the Congressional Review Act, Congress has passed and 
the president has signed a joint resolution disapproving a final rule 
published by the Bureau of Consumer Financial Protection (Bureau) on 
July 19, 2017, to regulate arbitration agreements in contracts for 
specified consumer financial products and services. Under the joint 
resolution and by operation of the Congressional Review Act, the 
arbitration agreements rule has no force or effect. The Bureau is 
hereby removing it from the Code of Federal Regulations (CFR).

DATES: This action is effective November 22, 2017.

FOR FURTHER INFORMATION CONTACT: Owen Bonheimer and Nora Rigby, Senior 
Counsels, Office of Regulations, Consumer Financial Protection Bureau, 
at 202-435-7700 or [email protected]. Press inquiries should 
be directed to the Office of Communications, at 202-435-7170 or 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    Pursuant to section 1028(b) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (Pub. L. 111-203), on July 10, 2017, the 
Bureau issued a final rule titled Arbitration Agreements to regulate 
pre-dispute arbitration agreements in contracts for specified consumer 
financial products and services. The Bureau published the arbitration 
agreements rule in the Federal Register on July 19, 2017 (82 FR 33210), 
establishing 12 CFR part 1040. As required by section 1028(a) of the 
Dodd-Frank Act, the arbitration agreements rule followed the 
publication and delivery to Congress of the Bureau's March 2015 study 
concerning the use of pre-dispute arbitration agreements. The 
arbitration agreements rule would have imposed two sets of limitations 
on the use of pre-dispute arbitration agreements by providers of 
certain consumer financial products and services. First, the 
arbitration agreements rule would have prohibited providers from using 
a pre-dispute arbitration agreement to block consumer class actions in 
court and would have required providers to include a provision 
reflecting this limitation in arbitration agreements they entered into. 
Second, the arbitration agreements rule would have required providers 
to redact and submit to the Bureau certain records relating to arbitral 
proceedings and relating to the use of pre-dispute arbitration 
agreements in court, and would have required the Bureau to publish 
these records on its Web site. While the arbitration agreements rule 
became effective on September 18, 2017, the arbitration agreements rule 
would have applied only to pre-dispute arbitration agreements entered 
into after March 19, 2018.
    The United States House of Representative passed House Joint 
Resolution 111 disapproving the arbitration agreements rule under the 
Congressional Review Act (5 U.S.C. 801 et seq.) on July 25, 2017. The 
United States Senate passed the joint resolution on October 24, 2017. 
President Donald J. Trump signed the joint resolution into law as 
Public Law 115-74 on November 1, 2017. Under the joint resolution and 
by operation of the Congressional Review Act, the arbitration 
agreements rule has no force or effect. Accordingly, the Bureau is 
hereby removing the final rule titled Arbitration Agreements from the 
CFR.

II. Procedural Requirements

    This action is not an exercise of the Bureau's rulemaking authority 
under the Administrative Procedure Act (APA) because the Bureau is not 
``formulating, amending, or repealing a rule'' under 5 U.S.C. 551(5). 
Rather, the Bureau is effectuating changes to the CFR to reflect what 
congressional action has already accomplished. Accordingly, the Bureau 
is not soliciting comments on this action.

List of Subjects in 12 CFR Part 1040

    Banks, Banking, Business and industry, Claims, Consumer protection, 
Contracts, Credit, Credit unions, Finance, National banks, Reporting 
and recordkeeping requirements, Savings associations.

PART 1040--[REMOVED]

    For the reasons set forth above, and pursuant to the Congressional 
Review Act (5 U.S.C. 801 et seq.) and Public Law 115-74 (131 Stat. 
1243), the Bureau amends 12 CFR chapter X by removing part 1040.

    Dated: November 15, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-25324 Filed 11-21-17; 8:45 am]
 BILLING CODE 4810-AM-P