(Bloomberg) -- The U.S. Senate moved Tuesday to overturn a rule aimed at making it easier for customers to sue banks, handing financial firms a big win in their battle against post-crisis regulations.
Majority Republicans pushed through a reversal of Consumer Financial Protection Bureau limits on mandatory arbitration in a 51-50 vote. Vice President Mike Pence was called in to cast the tie-breaking vote. The move using Congress’s power to overturn agency rules follows a similar vote by the House in July.
The CFPB rule announced in July would limit companies’ ability to impose arbitration agreements on customers in financial contracts, making it easier for aggrieved parties to join together in class-action lawsuits. Democrats and other supporters of the rule argued that it would give consumers an important protection against mistreatment by banks.
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