A Republican-backed effort to overturn a rule making it easier for consumers to sue banks has hit a snag: the Senate, the Wall Street Journal reported today. At issue is a Consumer Financial Protection Bureau rule approved in July barring fine-print requirements that consumers use arbitration to resolve disputes over financial services. The rule makes it easier for consumers to join class-action lawsuits against banks and credit-card companies. Though fiercely fought by the financial industry, it is set to go into effect in March. CFPB Director Richard Cordray pressed ahead with the rule despite opposition from Trump administration banking officials and Republicans in Congress. Republican lawmakers are targeting the CFPB rule with a legislative tool known as the Congressional Review Act. It allows lawmakers to overturn a newly issued regulation on an expedited schedule with a simple majority vote in Congress. The House voted 231-190 to overturn the rule in July. The Senate plans to act in September when it returns from a long recess. However, support in the Senate is uncertain. No Democrats are likely to back the effort, and Republicans, with their slim majority, can’t afford to lose more than two GOP votes. Several Republican senators have expressed reservations about voting to overturn the regulation, worried they may be portrayed as siding with banks and against consumers.
