On September 20, the Office of the Comptroller of the Currency (OCC) released data showing the potential unintended consequences of the Consumer Financial Protection Bureau (CFPB)’s rule banning mandatory arbitration. In July, shortly after the Bureau finalized its rule, the OCC sent a letter saying “A variety of OCC [Office of the Comptroller of the Currency] staff have reviewed the CFPB’s arbitration proposal…and have expressed concerns about its potential impact on the institutions that make up the federal banking system and its customers.” The CFPB later relinquished its data to the OCC, but left the rule in place.
Now that the OCC has had time to analyze the effects of the rule, it looks like the comptroller’s concern was justified. In a report released today, the OCC found that there was an 88 percent chance that the cost of consumer credit would rise, with the possibility of significantly large cost increases for the consumer.
To read more about the potential consumer impact of the CFPB’s Arbitration Rule, click here.
Consumers who want to read the OCC’s full report can find it here.