New rule on class actions survives first challenge

Reuters News
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Posted: Jul 31, 2017 12:16 PM

WASHINGTON (Reuters) - The Acting U.S. Comptroller of the Currency Keith Noreika said on Monday he will not petition the council of financial regulatory chiefs to stay a new rule aimed at restoring consumers' ability to band together to sue financial companies.

Since the Consumer Financial Protection Bureau's new rule abolishing "mandatory arbitration clauses" was released earlier this month Noreika had publicly argued with CFPB Director Richard Cordray, saying the rule could threaten the safety and soundness of the banking system.

Many had expected Noreika to make that case to the Financial Stability Oversight Council and convince them to put the rule on ice, but in Monday's statement he said he had not been able to complete a thorough review of data on the rule in time to make a petition.

(Reporting by Lisa Lambert and Pete Schroeder)