In a statement released today, Acting Comptroller Keith Noreika announced that he will not petition the Financial Stability Oversight Council to stay the effective date of the CFPB’s final arbitration rule.

Earlier this month, Acting Comptroller Noreika and Director Cordray exchanged a series of letters in which Mr. Noreika raised OCC concerns about the arbitration rule’s impact on the safety and soundness of the U.S. banking system.  Acting Comptroller Noreika also requested data and analysis used by the CFPB in support of the arbitration rule.

In his statement, Acting Comptroller Noreika indicates that the OCC “has only begun its review of the CFPB’s data and analysis” and that “[n]othing so far diminishes my concerns that the rule may adversely affect the institutions within the federal banking system and their customers.”  However, according to Mr. Noreika, “the OCC cannot complete [its] thorough review in the limited time before a petition must be filed with the [FSOC].”

Acting Comptroller Noreika states that he will not petition the FSOC “[g]iven that Congress is considering use of the Congressional Review Act to overturn the CFPB’s Final Rule.”  He expresses hope that “Congress will act on this opportunity to preserve effective alternatives for consumers to resolve their disputes without lengthy and costly litigation and to reduce the ‘piling on’ of legal and regulatory burden….”

On July 25, the House passed H.J. Res. 111 which provides for Congressional disapproval of the arbitration rule under the Congressional Review Act.  A resolution disapproving the rule under the CRA has also been introduced in the Senate but a vote is not expected until September.