- Yuri Gripas/Reuters
- The Senate erased a rule that exposed banks and credit card companies to large class-action lawsuitsVice President Mike Pence cast the deciding vote, breaking a 50-50 tie.The GOP argued the rule harmed the free market, but Democrats are calling the vote a victory for Wall Street.
The Senate has voted to nullify a consumer-oriented rule that would let millions of Americans band together to sue their banks or credit card companies.
Vice President Mike Pence cast the tie-breaking vote Tuesday night to stop the rule from going into effect – the fifth instance he has broken a 50-50 tie since taking office.
Many consumers must go through an arbitrator to resolve financial disputes, but the Consumer Financial Protection Bureau finalized a rule that bans most types of mandatory arbitration clauses.
The rule 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.
Democrats said before the vote that nullifying the rule would be a victory for Wall Street.
The resolution will now go to President Donald Trump, who is expected to sign it into law.