Senate Republicans voted late Tuesday night to kill a new rule which would have made it easier for consumers to band together and sue financial companies.
The measure overturns the so-called arbitration rule, which would have banned banks, credit-card companies and other financial firms from requiring customers to settle disagreements through arbitration rather than in the courts. The mandate often appears as a fine-print clause in customer agreements.
The repeal comes despite the recent uproar over the inclusion of a mandatory arbitration clause by Equifax in its free-monitoring service agreement. In that case, the credit-reporting firm — which offered the service after revealing a massive data breach in early September — ended up removing the clause.