Vice President Mike Pence broke a tie in the Senate Tuesday night to strike down the Consumer Financial Protection Bureau’s arbitration rule, which would have allowed consumers to more freely file class-action lawsuits against financial institutions.
The vote is widely being regarded as one of the first major wins for the financial services industry under the new administration. President Donald Trump is expected to sign the repeal legislation.
Effectively, this repeal keeps the status quo that this industry has been operating under for years. It doesn’t mean lenders can take the foot off the compliance pedal, David Gemperle, partner at Nisen & Elliott LLC, told Auto Finance News.