WASHINGTON (AP) — The Senate is heading toward a vote to repeal a consumer-oriented rule that lets millions of Americans band together to sue their banks or credit card companies.
Now, many consumers are required to 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 banking sector and other business groups have urged Republican lawmakers to keep the rule from going into effect. They say consumers actually get a better result in arbitration cases compared to class-action lawsuits.
Democrats say arbitration takes power away from ordinary consumers and places it with companies such as Wells Fargo and Equifax that already have an unfair advantage.
Democrats say nullifying the rule would be a victory for Wall Street.
