Business groups, including the American Bankers Association,have filed suit asking a federal judge to nullify the CFPB’s recent arbitration rule.

And the groups, which also includes the U.S. Chamber ofCommerce, asked that the agency be prohibited from enforcing therule until its constitutionality can be determined.

Credit unions did not join the groups in filing the suit, buthave been active in attacking the rule on other fronts. Creditunion trade groups have been pushing the Senate to void the rulethrough the Congressional Review Act.

The CFPB rule prohibits financial institutions and others fromincluding clauses forcing consumers into arbitration when they havecomplaints.

In the suit, filed in the U.S. District Court for the NorthernDistrict of Texas, the groups contend that the structure of theCFPB is unconstitutional.

That argument also is pending before the U.S. Court of Appealsfor the District of Columbia, where a mortgage company has arguedthat the agency’s makeup is unconstitutional since the director mayonly be removed for cause.

In the Texas suit, the business groups also contend that therule violates the Administrative Procedures Act because the CFPBrelied on a flawed study in issuing the rule.

The groups allege that the CFPB failed to take into accountproblems that the rule poses, saying that it is the “very model ofarbitrary and capricious agency action.”

Finally, the groups argue that the rule fails to advance thepublic interest or consumer welfare.

“If the rule goes into effect, it will inflict immediate,irreparable injury on Plaintiffs,” the groups argue. “Providers ofconsumer financial products and services will incur significantlegal and compliance costs in adapting their businesses to the newrule; the vast majority of these costs will be wasted, and notrecoverable, if the Rule ultimately is deemed to be contrary tolaw.”

A CFPB spokesman declined comment on the suit.

Credit unions have been pressing the Senate to follow the Housein using the Congressional Review Act to nullify the rule. Congresscan nullify agency rules by passing a resolution within 60legislative days of the agency action.

Consumer groups said last week that they feared that a Senatevote on the resolution was imminent.

However, the Senate did not consider the legislation last weekamid speculation that supporters of the resolution did not have the50 votes needed to pass it.