After all the trouble we’ve had with banks in the last couple of years, this news is particularly disturbing. Just this week, our Vice President Mike Pense cast the tie-breaking vote “to repeal a rule that made it easier for Americans to sue their banks and credit card companies.”1 The measure was passed by a vote of 51-50. Looks like Wall Street is back in business.
- Wells Fargo executive in charge of fake accounts unit that cost bank a $185m fine and 5,300 jobs will walk away with $125m golden handshake
“Wiping out the rule would affect tens of millions of Americans who often don’t know they are covered by an arbitration clause when they sign up for a credit card, checking account or prepaid card.
Many companies tuck arbitration clauses into contracts as a way to resolve disputes outside the court system, making it harder for an individual to bring a case against a bank or credit card company.
‘Tonight’s vote is a giant setback for every consumer in this country,’ Richard Cordray, the head of the Consumer Financial Protection Bureau said in a statement. ‘Wall Street won and ordinary people lost.'”2
“The evidence is clear that the CFPB’s rule would neither protect consumers nor serve the public interest,” the White House said in a statement. Instead, “consumers would have fewer options for quickly and efficiently resolving financial disputes.”3
“‘This bill is a giant wet kiss to Wall Street. Bank lobbyists are crawling all over this place, begging Congress to vote and make it easier for them to cheat consumers.’Republican lawmakers argue the CFPB’s own study shows consumers get more money in their pockets when they use arbitration as opposed to hiring expensive class-action trial lawyers.”4