The Latest: Republicans back repeal of financial rule



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WASHINGTON (AP) — The Latest on Republican efforts to repeal a banking regulation that would let consumers participate in class-action lawsuits. (all times local):

5 p.m.

House Republicans have backed legislation that would nullify a federal rule allowing consumers to join together to sue their banks or credit card companies rather than use an arbitrator to resolve a dispute.

The vote was 231-190.

Just two weeks ago, the Consumer Financial Protection Bureau finalized a rule banning most types of mandatory arbitration clauses.

Republican lawmakers have wasted no time trying to undo the rule. They call it a gift to trial lawyers, and they are being cheered on by banking groups.

Democrats fought the Republican-led effort, arguing that arbitration is not a viable option for many consumers out a small amount of money. The Democrats say that giving consumers a chance to join together in the courts can provide some redress while also deterring companies from unscrupulous behavior.

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1:30 p.m.

The Republican-led House is seeking to overturn a rule that would let consumers join together to sue their banks or credit card companies rather than use an arbitrator to resolve a dispute.

The Consumer Financial Protection Bureau finalized the rule just two weeks ago. The rule bans most types of mandatory arbitration clauses. Republicans say it's a bad deal for consumers but a big win for trial lawyers.

The House is slated to vote Tuesday.

Democrats are fighting to keep the rule, saying that Republicans are determined to act on behalf of financial institutions, not protect customers.

Joining with House Democrats, Sen. Elizabeth Warren said that when a whole lot of people get hurt in the same way, they should have a chance to join together to pursue redress.

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The Associated Press

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