CONSUMER PROTECTION/LEGAL: “The nation’s consumer watchdog is adopting a rule on Monday [7-10-17] that would pry open the courtroom doors for millions of Americans, restoring their right to bring class-action lawsuits against financial firms.
Under the Consumer Financial Protection Bureau rule, banks and credit card companies could no longer force customers into arbitration and block them from banding together to file a class-action suit.
The change would deal a serious blow to Wall Street and could wind up costing financial firms billions of dollars.
More immediately, its adoption is almost certain to set off a political firestorm in Washington, where both the Trump administration and House Republicans have pushed to rein in the consumer finance agency as part of a broader effort to lighten regulation on the financial industry.
Under the Congressional Review Act — a 1996 law that had been rarely used before the current Congress employed it to reverse 14 rules from the Obama administration — lawmakers have 60 legislative days to overturn the rule blocking mandatory arbitrations. The rule could take effect next year.
The Chamber of Commerce and other pro-business groups have belittled the rule as nothing more than a gift to class-action lawyers, who tend to be Democratic donors.”
-Jessica Silver-Greenberg and Michael Corkery, “U.S. Agency Moves to Allow Class-Action Lawsuits Against Financial Firms,” The New York Times online, July 10, 2017