A new article by two Ballard Spahr partners featured in The National Law Review calls out Richard Cordray for omitting “important points” in his recent letter to President Trump asking him to not repeal the CFPB’s arbitration rule.
In the letter, Cordray claimed that military service members would be hurt without the arbitration rule, which the consumer finance experts explained was not the case:
“First, as discussed in the arbitration rule and as we have previously clarified, the Military Lending Act already regulates the use of arbitration agreements in most consumer credit contracts entered into by active-duty servicemembers and their dependents. Therefore, it will not be affected by repeal of the CFPB rule.”
Kaplinsky and Levin went on to point out that Cordray contradicted himself when he later acknowledged that the under the arbitration rule, arbitration is no more harmful to military service members than litigation, and called for his letter to be disregarded.
President Trump signed legislation repealing the CFPB’s arbitration rule on Wednesday.