(Oct. 25) – Speaker Crisanta Duran and Majority Leader KC Becker said today that they were appalled by the U.S. Senate’s vote to overturn a federal rule protecting consumers’ right to band together against abuses by financial institutions.
“Republicans in the U.S. Senate are standing with big banks over everyday Americans,” Speaker Duran said. “By allowing corporations to prevent consumers from accessing the court system, the Republicans are making it easier to engage in the reckless and predatory practices that cause people real harm.”
The new rule would have prohibited binding arbitration clauses that are routinely included in the fine print of the American consumers’ contracts with financial institutions. For example, if it had been in effect at the time of the Equifax breach it would have allowed the 143 million Americans who were compromised to collectively seek redress.
“It is frightening to see Republicans in Congress voting to deny millions of Americans an effective way to protect themselves from corporations run amok,” Rep. Becker said “This is one of those moments when Republicans’ allegiance to corporations over consumers is plain for all to see.”
The new rule was one of several promulgated by the federal Consumer Financial Protection Bureau as a check against some of the abuses in the banking and credit industry that negatively impact American consumers.