The Consumer Financial Protection Bureau’s arbitration rule was finally revoked from the Federal Register, officially nullifying the rule.
The Federal Register published the notice on Wednesday, canceling the rule, effective immediately.
Back on Nov. 1, President Donald Trump signed a resolution revoking the bureau’s highly contested arbitration rule.
The CFPB updated its website to acknowledge Trump’s action on the arbitration rule last week, leaving it to the Federal Register to rescind the rule.
The bureau’s webpage for “Arbitration agreements” now has an update on the top, and the webpage still features all the information on the final rule and the proposed rule to use as a reference.
Ever since the bureau unveiled the rule in July, it was an uphill climb for the CFPB and Democrats to stop Republicans from overturning it.
The main intention of the rule was to ban companies from using mandatory arbitration clauses and allow consumers to participate in class action lawsuits.
The now overturned rule mainly impacted consumer financial products like credit cards and bank accounts which have arbitration clauses in their contracts that prevent consumers from joining together to sue their bank or financial company for wrongdoing.