Economy

Pence breaks tie as Senate votes to repeal banking rule

Pence breaks tie as Senate votes to repeal banking rule”

The petition was organized by Public Citizen, Americans for Financial Reform, Consumers Union and several other consumer groups.

Two Republicans sided with Democratic lawmakers to keep the rule - Sens.

Vice President Mike Pence cast the final vote to break a 50-50 tie. The Senate could vote on S.J. Res. 47 as soon as tonight.

"They would rather steer consumer disputes away from the courts entirely and put them into an arbitration setting where the deck is stacked against the ordinary person from gaining any restitution", Dayen concludes. Sherrod Brown, D-Ohio.

The Treasury Department also attempts to argue that the CFPB's rule opens the door to "frivolous" lawsuits and so-called "blackmail settlements". "I urge my colleagues to repeal the CFPB arbitration rules that imposes obvious costs and invisible benefits". Consumers often didn't even know they had forfeited a legal right until after the fact.

Judging by opinion polls, the public appears to agree with Dayen and the pro-consumer Fair Arbitration Now coalition, which announced on Tuesday that almost 100,000 Americans have signed a petition supporting the CFPB's rule.

The Senate vote seals a significant victory for Republicans in their longstanding campaign to rein in the consumer bureau, which they have fought since it was created as an independent agency by the Dodd-Frank Act.

"Companies like Equifax and Wells Fargo have hurt millions of consumers and tried to escape accountability using forced arbitration clauses", Sen. Under the Trump administration, many agencies have begun taking steps to roll back regulations, which the White House has said strangles economic growth. "No one", said Sen. Mike Crapo, the Republican chairman of the Senate Banking, Housing and Urban Affairs Committee. The House of Representatives has already voted to scrap the rule, and the Senate has about a month to do the same before a key deadline.

Banks, their Republican congressional supporters and the Treasury Department under Tump said arbitration is not just a way for businesses to avoid justice. They said consumers would still have the option to use arbitration to resolve a dispute, if both parties want to go that route.

The arbitration rule bans companies from preventing consumers from filing or participating in class action lawsuits and takes effect in 2019. "A class action gives you a chance to get some money back".

Cordray said Treasury got it wrong.

CFPB reported that over the past five years, 34 million consumers received $1 billion in payments through lawsuits. That comes to $32.35 apiece. Class action lawsuits are a public ways to force companies to change questionable business practices that would otherwise receive little attention. None of that would have happened without the group lawsuits. The clause prompted outrage from customers and some Congress members when it was disclosed that confidential personal and credit information for 145 million people was breached - and that customers who wanted Equifax to enact special protections on their behalf were going to have to sign arbitration clauses first.



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