Senate Republicans Vote to Eliminate Rule That Would Allow Consumers to Sue Financial Institutions

Vice President Mike Pence cast the deciding vote Tuesday night, breaking a 50-50 tie in the Senate, to defeat a new rule that would have ensured consumers had the right to sue financial institutions, rather than being compelled to accept arbitration to combat wrongdoing. The rule was drafted by the Consumer Financial Protection Bureau, which was created following the financial crisis in an effort to provide more oversight and consumer protections. Banks and credit card companies were vehemently against the rule, which was set to get into effect in 2019, because it would open them up to increased liability after years of relying on small-type arbitration clauses in their consumer contracts, where customers preemptively forgo their right to sue the company.

LEER MÁS: Slate.com