This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

The Senate voted on Tuesday night to overturn a rule that would allow consumers to sue banks in large groups. The 51-50 vote, with the deciding one tie-breaking vote cast by Vice President Mike Pence, overturns a rule set by the Consumer Financial Protection Bureau. The vote is considered to be the most significant legislative victory for the financial industry so far in the Trump era.

The CFPB rule was announced in July and was expected to take effect in March 2018. In effect, the rule would have allowed consumers to file class-action lawsuits against large financial institutions instead of entering private arbitration. The House had already voted to overturn it in July. The Senate resolution will now head to the President’s desk, where he is expected to sign it into law.

The intent of the rule was to give consumers more power to hold powerful banks accountable for their wrongdoings, for example in the case of the Wells Fargo scandal in 2016 — the bank had opened customer accounts without their permission — and, more recently, of the Equifax leak with hackers grabbing the personal information of  millions of consumers. With the overturning of this rule, millions of Americans who were affected by the Equifax breach may not be able to join class-action lawsuits against the company.

“Tonight’s vote is a giant setback for every consumer in this country,” said Richard Cordray, the current CFPB director. “Wall Street won and ordinary people lost. This vote means the courtroom doors will remain closed for groups of people seeking justice and relief when they are wronged by a company.”

However, bank lobbyists and those opposing the rule said that if it were to have passed, it would only result in a mass amount of class-action lawsuits. In turn, the cost of fighting them would trickle down and end up costing the consumer more. The financial industry sees this vote as a big win.

“The Senate acted to protect consumers with this vote,” said Richard Hunt, president and chief executive of the Consumer Bankers Association trade group. “This rule was ill-conceived, based on an incomplete study and did not fulfill the Bureaus’s goal of protecting consumers.”

Featured image by Jason E. Vines / Getty Images.

The Business Platinum® Card from American Express

Aside from the 75,000 points welcome bonus, Amex recently made huge improvements to the Business Platinum Card, including the fact that you will now earn 50% more points on purchases of $5,000 or more, earn 5x on flights and eligible hotels at Amextravel.com and cardholders will receive a $200 airline fee credit each year.

Apply Now
More Things to Know
  • Welcome Offer: Earn up to 75,000 Membership Rewards® points.
  • Earn 50,000 Membership Rewards® points after you spend $10,000 and an extra 25,000 points after you spend an additional $10,000 all on qualifying purchases within your first 3 months of Card Membership.
  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • Get 50% more Membership Rewards® points. That's 1.5 points per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.
  • 35% Airline Bonus: Use Membership Rewards® Pay with Points for all or part of a flight with your selected qualifying airline, and you can get 35% of the points back, up to 500,000 bonus points per calendar year.
  • Enroll to get up to $200 in statement credits annually by getting up to $100 semi-annually for U.S. purchases with Dell. Terms apply.
  • Get one year of Platinum Global Access from WeWork. With this membership, you can access 300+ premium, inspiring workspaces in 75+ cities. To get this exclusive offer, enroll between 2/15/2019 and 12/31/2019.
  • Terms Apply
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$595
Balance Transfer Fee
See Terms
Recommended Credit
Excellent Credit
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.