Stories

Axios Oct 25
SaveSave story

Senate votes to nullify rule allowing class action suits against banks

Pence broke the tie.File photo: Scott Applewhite / AP

The Senate has voted to nullify a rule allowing consumers join together to sue banks or credit card companies, with Vice President Pence breaking the tie. GOP Sens. Lindsey Graham and John Kennedy joined all 48 Democrats in voting no. The rule banned companies from using forced settlements in consumer disputes.

As the AP notes, the rule from the Consumer Financial Protection Bureau "exposed banks to large class-action lawsuits. Supporters say that possibility would help ensure banks, credit card companies and other lenders treat consumers appropriately. The vote comes months after House action and reflects the effort of the Trump administration and congressional Republicans to undo regulations that the GOP argues harm the free market."