Under Cover of Graham-Cassidy, Senate GOP Moving to Gut Major CFPB Rule (Consumer Binding-Arb)

An added wrinkle here: executives for both Wells Fargo and Equifax, both accused of ripping off millions of consumers, will testify in Senate committees next week. Both companies have used arbitration clauses in an attempt to deny consumers access to the courts. By getting the arbitration vote out of the way before the hearings, Republicans can avoid having to hand a gift to financial companies while Wells Fargo and Equifax sit squarely in the public spotlight. With Obamacare repeal sucking up all the oxygen, this week offers a perfect cover.

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The CFPB's rule bars consumer financial contracts from including clauses that force disputes into an arbitration proceeding, instead of allowing customers to join together with others in a class-action lawsuit. Critics say this gives financial institutions a license to rip people off, confident that only a maniac would go through years of costly arbitration to recover an erroneous $30 charge. "That is exactly what the banks are counting on... they can get away with nickel and diming you forever," said Sen. Elizabeth Warren (D-Mass.) in a Senate floor speech Monday night.

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The bigger problem for McConnell, though, is that even with Strange back, the Kentucky Republican may not have the votes. Sen. Lindsey Graham, R-S.C., opposes the move, ironic given that his own health care repeal bill, Graham-Cassidy, has provided the cover for McConnell to move quietly on the arbitration rule.