82 FR 55500 - Arbitration Agreements

BUREAU OF CONSUMER FINANCIAL PROTECTION

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

Page Range		55500-55500
FR Document		2017-25324

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 Issue 224 (Wednesday, November 22, 2017)

[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

55500 Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Rules and Regulations

(5) Deduct an amount equal to any FOR FURTHER INFORMATION CONTACT: 1, 2017. Under the joint resolution and
PCC or NCA that the corporate credit Owen Bonheimer and Nora Rigby, by operation of the Congressional
union maintains at another corporate Senior Counsels, Office of Regulations, Review Act, the arbitration agreements
credit union; Consumer Financial Protection Bureau, rule has no force or effect. Accordingly,
(6) Deduct any amount of PCC at 202–435–7700 or cfpb_reginquiries@ the Bureau is hereby removing the final
received from federally insured credit cfpb.gov. Press inquiries should be rule titled Arbitration Agreements from
unions that causes PCC minus retained directed to the Office of the CFR.
earnings, all divided by moving daily Communications, at 202–435–7170 or
II. Procedural Requirements
average net assets, to exceed two press@consumerfinance.gov.
percent when a corporate credit union’s SUPPLEMENTARY INFORMATION:
This action is not an exercise of the
retained earnings ratio is less than two Bureau’s rulemaking authority under
and a half percent. I. Background the Administrative Procedure Act (APA)
* * * * * Pursuant to section 1028(b) of the because the Bureau is not ‘‘formulating,
Dodd-Frank Wall Street Reform and amending, or repealing a rule’’ under 5
■ 3. In Appendix B to part 704, in part
Consumer Protection Act (Pub. L. 111– U.S.C. 551(5). Rather, the Bureau is
I, revise paragraphs (b)(2) and (3) to read
203), on July 10, 2017, the Bureau effectuating changes to the CFR to
as follows:
issued a final rule titled Arbitration reflect what congressional action has
Appendix B to Part 704—Expanded Agreements to regulate pre-dispute already accomplished. Accordingly, the
Authorities and Requirements arbitration agreements in contracts for Bureau is not soliciting comments on
* * * * * specified consumer financial products this action.
and services. The Bureau published the List of Subjects in 12 CFR Part 1040
Part I
arbitration agreements rule in the
* * * * * Federal Register on July 19, 2017 (82 FR Banks, Banking, Business and
(b) * * * 33210), establishing 12 CFR part 1040. industry, Claims, Consumer protection,
(2) 28 percent if the corporate credit union
As required by section 1028(a) of the Contracts, Credit, Credit unions,
has a seven percent minimum leverage ratio Finance, National banks, Reporting and
and a two and a half percent retained Dodd-Frank Act, the arbitration
agreements rule followed the recordkeeping requirements, Savings
earnings ratio, and is specifically approved associations.
by the NCUA; or publication and delivery to Congress of
(3) 35 percent if the corporate credit union the Bureau’s March 2015 study PART 1040—[REMOVED]
has an eight percent minimum leverage ratio concerning the use of pre-dispute
and a three percent retained earnings ratio arbitration agreements. The arbitration For the reasons set forth above, and
and is specifically approved by the NCUA. agreements rule would have imposed pursuant to the Congressional Review
* * * * * two sets of limitations on the use of pre- Act (5 U.S.C. 801 et seq.) and Public
[FR Doc. 2017–25223 Filed 11–21–17; 8:45 am] dispute arbitration agreements by Law 115–74 (131 Stat. 1243), the Bureau
BILLING CODE 7535–01–P providers of certain consumer financial amends 12 CFR chapter X by removing
products and services. First, the part 1040.
arbitration agreements rule would have Dated: November 15, 2017.
BUREAU OF CONSUMER FINANCIAL prohibited providers from using a pre- Richard Cordray,
PROTECTION dispute arbitration agreement to block Director, Bureau of Consumer Financial
consumer class actions in court and Protection.
12 CFR Part 1040 would have required providers to [FR Doc. 2017–25324 Filed 11–21–17; 8:45 am]
include a provision reflecting this
[Docket No. CFPB–2016–0020] BILLING CODE 4810–AM–P
limitation in arbitration agreements they
entered into. Second, the arbitration
RIN 3170–AA51
agreements rule would have required
providers to redact and submit to the DEPARTMENT OF TRANSPORTATION
Arbitration Agreements
Bureau certain records relating to Federal Aviation Administration
AGENCY: Bureau of Consumer Financial arbitral proceedings and relating to the
Protection. use of pre-dispute arbitration 14 CFR Part 25
ACTION: Final rule; CRA revocation. agreements in court, and would have
required the Bureau to publish these [Docket No. FAA–2017–0951; Special
SUMMARY: Under the Congressional records on its Web site. While the Conditions No. 25–706–SC]
Review Act, Congress has passed and arbitration agreements rule became
the president has signed a joint effective on September 18, 2017, the Special Conditions: Mitsubishi Aircraft
resolution disapproving a final rule arbitration agreements rule would have Corporation Model MRJ–200 airplane;
published by the Bureau of Consumer applied only to pre-dispute arbitration Design Roll Maneuver for Electronic
Financial Protection (Bureau) on July agreements entered into after March 19, Flight Controls
19, 2017, to regulate arbitration 2018. AGENCY: Federal Aviation
agreements in contracts for specified The United States House of Administration (FAA), DOT.
consumer financial products and Representative passed House Joint ACTION: Final special conditions; request
services. Under the joint resolution and Resolution 111 disapproving the for comments.
by operation of the Congressional arbitration agreements rule under the
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Review Act, the arbitration agreements Congressional Review Act (5 U.S.C. 801 SUMMARY: These special conditions are
rule has no force or effect. The Bureau et seq.) on July 25, 2017. The United issued for Mitsubishi Aircraft
is hereby removing it from the Code of States Senate passed the joint resolution Corporation (Mitsubishi) Model MRJ–
Federal Regulations (CFR). on October 24, 2017. President Donald 200 airplanes. These airplanes will have
DATES: This action is effective J. Trump signed the joint resolution into a novel or unusual design feature when
November 22, 2017. law as Public Law 115–74 on November compared to the state of technology

VerDate Sep<11>2014 16:22 Nov 21, 2017 Jkt 244001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\22NOR1.SGM 22NOR1

Document Created: 2017-11-22 00:49:08
Document Modified: 2017-11-22 00:49:08

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule; CRA revocation.
Dates		This action is effective November 22, 2017.
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]
FR Citation		82 FR 55500
RIN Number		3170-AA51
CFR Associated		Banks; Banking; Business and Industry; Claims; Consumer Protection; Contracts; Credit; Credit Unions; Finance; National Banks; Reporting and Recordkeeping Requirements and Savings Associations