“Tonight’s vote is a giant setback for every consumer in this country. Wall Street won and ordinary people lost,” CFPB Director Richard Cordray
Wall Street Wins Big as Senate Votes to Roll Back Regulation Allowing Consumers to Sue their Banks
Vice President Pence cast a tie-breaking vote late Tuesday to block new regulations allowing U.S. consumers to sue their banks, handing Wall Street and other big financial institutions their biggest victory since President Trump’s election.
The rules would have cost the industry billions of dollars, according to some estimates. With the Senate’s vote, Wall Street is beginning to reap the benefits of the Trump administration focus on rolling back regulations it says are strangling the economy. The vote is also a major rebuke of the Consumer Financial Protection Bureau, which wrote the rules, and has often found itself at odds of Republicans in Congress and the business community.
At issue is the fine print in many of the agreements that consumers sign when they apply for credit cards or bank accounts. These agreements typically require them to settle any disputes they have with the company through arbitration, in which a third party rules on the matter, rather than going to court or joining a class-action lawsuit.