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Posts Tagged ‘congressional review act’

Get Back Your Right To Take Your Bank To Court

Thursday, July 13th, 2017

Wall Street, the U.S. Chamber of Commerce and right-wing Republicans are ganging up again this week against consumers who want to hold financial institutions that rip them off accountable.

The target this time is a rule issued this week by the Consumer Financial Protection Bureau that is designed to restore the ability bank and credit card customers, as individuals or as a group, to take a financial dispute to court.

“Our new rule will restore the ability of groups of people to file or join group lawsuits. In some cases, not only will companies have to provide relief, they will also have to change their behavior moving forward,” said a statement issued by the agency. “People who would otherwise have to go it alone or give up, will be able to join with others to pursue justice and some remedy for their harm.”

However, unsurprisingly, it took less than a day for the guardians of Wall Street profiteering to attack the rule. They are the same people – like Sen. Tom Cotton, R-Ark., in the Senate and Rep. Jeb Hensarling, R-Texas, in the House – who are working to either get rid of the CFPB entirely or render it toothless.

That’s why People’s Action is launching a petition asking Congress to keep the CFPB arbitration rule and protect the ability of ordinary people to go to court against corporate wrongdoers.

Cotton announced Tuesday that he would be introducing legislation to undo the rule under the execrable Congressional Review Act, the same tool Republicans have been using since President Trump took office to undo a host of Obama-era regulations.

Quoted in The Washington Examiner, “Cotton accused the bureau of “going rogue again” and said that the rule “ignores the consumer benefits of arbitration and treats Arkansans like helpless children, incapable of making business decisions in their own best interests.”

Reuters reported that “the U.S. Chamber of Commerce is contemplating a legal challenge and Trump administration officials are also looking at ways to kill the rule.”

Many customers don’t realize that right now, if they believe their bank or credit card customer has ripped them off or otherwise harmed them, they can’t take the matter to court.

That’s because buried in the fine print of more than 50 percent of the nation’s credit card account agreements and more than 40 percent of the bank account agreements, accoording to a 2015 Consumer Financial Protection Bureau report, there’s language that says if you want to challenge wrong or unfair charges to your account, you are required to go into a binding arbitration process, rather than take the dispute to a court.

The arbitration process is rigged to favor the financial institution. When The New York Times looked at this process in 2015, it found that few customers used the arbitration process, and when they did, consumers lost roughly two-thirds of the time. The process is also explicitly designed to keep consumers with similar complaints from banding together to confront patterns of bad behavior.

Among other things, arbitration clauses shielded Wells Fargo from a class action lawsuit when its employees were creating thousands of bogus consumer accounts in order to meet sales quotas.

It’s only fair: If you steal from a bank, you’ll be brought before a judge. The same should happen if a bank steals from you – and thousands of others. That’s what the CFPB rule says.

The use of the Congressional Review Act is particularly pernicious because ff these Republicans succeed this won’t be a temporary setback. This fundamentally unfair and undemocratic practice that keeps Wall Street from being held legally accountable for its actions would be permanently locked in, because the act not only invalidates the rule but prohibits an agency from writing a similar rule in the future.

Sign this petition so Congress hears you loud and clear: Keep the CFPB arbitration rule and protect our right to challenge corporate wrongdoers in court.

Republican leaders in Congress are hell-bent on neutering the CFPB or eliminating it altogether, precisely because it takes actions like this to even the playing field for consumers going up against the financial giants.

This blog was originally published at OurFuture.org on July 13, 2017. Reprinted with permission.

About the Author: Isaiah Poole is communications director of People’s Action, and has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

New Congress on Track to Block Long-Sought Workplace and Public Health Protections

Wednesday, February 1st, 2017

An estimated 10,000 Americans die from asbestos-caused diseases each year, a figure that’s considered conservative. Asbestos is no longer mined in the United States but it still exists in products here, perpetuating exposure, especially for workers in construction and other heavy industries. In June 2016, after years of debate, the country’s major chemical regulation law was updated for the first time in 40 years, removing a major obstacle to banning asbestos.

Exposure to beryllium, a metal used in aerospace, defense, and communications industry manufacturing, to which about 62,000 U.S. workers are exposed annually, can cause a severe, chronic lung disease. On January 6, the Occupational Health and Safety Administration (OSHA) issued a rule—more than 15 years in the making—that dramatically lowers allowable workplace exposure to beryllium. OSHA says this will prevent 94 premature deaths and prevent 46 new cases of beryllium-related disease per year.

On April 17, 2013, an explosion and fire at the West Fertilizer Company plant in West, Texas, killed 15 people and injured hundreds. In late December—after a four-year process involving public, business, governments and non-profit input—the Environmental Protection Agency (EPA) issued a rule designed to prevent such accidents, improve community response to and preparedness for such disasters.

Those three examples are among the occupational and public health protective policies finalized by the Obama administration now jeopardized by antiregulatory legislation already passed by the 115th Congress. It remains to be seen if this legislation will become law and actually used. But, says University of Texas School of Law professor Thomas McGarity, the likely outcome is “that this will make people sick and unsafe.”

“Landscape is grim as it is”

In addition to having the ability to pass antiregulatory legislation, Congress has at its disposal the Congressional Review Act (CRA). Passed in 1996 by the Newt Gingrich-led House, it allows Congress to overturn a regulation passed during the last 60 legislative working days of an outgoing administration. What’s more, it prevents the creation of a substantially similar regulation. It’s only been used once, in 2001, to overturn the ergonomics regulation passed by OSHA under President Bill Clinton.

Add to this the Midnight Rules Relief Act, passed by the House on January 4. It amends the CRA, allowing Congress to overturn multiple regulations promulgated during the previous administration’s last six months, rather than individually as the CRA requires. “This allows the House to pick and choose rules that industry doesn’t like and do it all at once,” McGarity explains.

Also already passed by the House is the Regulatory Accountability Act. It includes a provision that could threaten the change made to the Toxic Substances Control Act (TSCA) eliminating the provision that prevented the EPA from banning asbestos. As Natural Resources Defense Council director of government affairs, David Goldston explains, “This bill has a provision that says notwithstanding any other provision of law, costs and benefits have to be considered when writing a rule.” Goldston calls this phrase “dangerous,” as it means putting economic costs to industry ahead of costs to human health as TSCA previously required—a requirement the revised bill eliminated.

And, as if these laws weren’t enough to threaten existing regulations, there’s the REINS Act (Regulations from the Executive In Need of Scrutiny Act), also already passed by the House. This law essentially says that an agency rule can’t go into effect unless Congress approves it. Or, as University of Maryland Carey School of Law professor Rena Steinzor explained in the American Prospect, “In a drastic power grab, the House has approved a measure that would strip executive agencies of the authority to issue significant new regulations.”

“If the REINS Act becomes law, then Congressional inaction will supersede previous Congressional action on fundamental bedrock popular health, safety and environmental protection laws,” says Public Citizen regulatory policy advocate Amit Narang.

He also points out that if the administration of Donald Trump declines to defend regulations now under legal challenge, they could also be undone. Among the rules now being challenged is OSHA’s long sought updated restriction on occupational silica exposure.

“The landscape is grim as it is,” says Emily Gardner, worker health and safety advocate at the non-profit citizens’ rights advocacy group Public Citizen, referring to OSHA’s limited resources. “There are nearly 5,000 workers dying on the job every year and OSHA’s not able to respond to threats as they’re happening.” Now, she says, “I’m looking at a Congress that would nearly paralyze rulemaking.”

“Designed to smash the system not reform it”

These laws effectively knock the foundation out from under how agencies like OSHA, the Department of Labor and EPA go about creating the network of regulations needed to implement the intent of laws that protect workplace and public health.

“This is designed to smash the system not reform it,” says Goldston of this antiregulatory legislation.

Not surprisingly, the historically pro-big business U.S. Chamber of Commerce supports antiregulatory legislation, as does the American Chemistry Council and National Association of Manufacturers. On the other hand, it’s opposed by American Sustainable Business Council, which represents more than 250,000 business owners and says the regulations these laws aim to undo are needed to support healthy, thriving workplaces and the economy.

Apart from the CRA, all of this legislation still needs to pass the Senate and be signed by the president to become law. But with a Republicans in the majority and Trump in the White House, vetoes seem highly unlikely.

This article originally appeared at Inthesetimes.com on January 27, 2017. Reprinted with permission.

Elizabeth Grossman is the author of Chasing Molecules: Poisonous Products, Human Health, and the Promise of Green Chemistry, High Tech Trash: Digital Devices, Hidden Toxics, and Human Health, and other books. Her work has appeared in a variety of publications including Scientific American, Yale e360, Environmental Health Perspectives, Mother Jones, Ensia, Time, Civil Eats, The Guardian, The Washington Post, Salon and The Nation.

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