Politico reported that Consumer Financial Protection Bureau Director Richard Cordray made a personal appeal to President Donald Trump to veto a congressional override of a landmark arbitration rule that allows consumers to bring class action suits against financial firms. The consumer bureau’s arbitration rule would allow consumers to fight disputes with their banks, credit unions and credit card companies in court. Many companies insert arbitration clauses into contracts with consumers requiring them to submit to arbitration instead.
In a letter to the president, Cordray said consumers should have the right to bring lawsuits just the way Trump had when he was in business.
“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,” Cordray said.
“I know that some have made elaborate arguments to pretend like that is not what is happening, ” he wrote. “But you are a smart man, and I think we both know what is really happening here.”
The Senate last week overturned the arbitration rule after Vice President Mike Pence broke the tie.