Republicans Moving to Repeal Financial Rule Opposed by Banks


The Republican-led House is seeking to overturn a rule that would let consumers join together to sue their banks or credit-card companies rather than use an arbitrator to resolve a dispute.

The Consumer Financial Protection Bureau finalized the rule just two weeks ago. The rule bans most types of mandatory arbitration clauses. Republicans say it’s a bad deal for consumers but a big win for trial lawyers.

The House is slated to vote Tuesday.

Democrats are fighting to keep the rule, saying that Republicans are determined to act on behalf of financial institutions, not protect customers.

Joining with House Democrats, Sen. Elizabeth Warren said that when a whole lot of people get hurt in the same way, they should have a chance to join together to pursue redress.