Senate Republicans on Tuesday agreed to do away with a law that had been proposed by their Democratic counterparts that would give Americans the right to sue financial institutions. The vote was so tight such that it had to be broken by Vice President Mike Pence as the dreadlock was at 50-50. The overturning of the law is a further indication that the Trump administration is interested in loosening the regulations on the Wall Street. This is seen by many as an effort to do away with regulations that were implemented during the Obama administration following the 2008 economic crisis. This means that the Republicans have taken a huge step in doing away with the efforts that have been put in place by the Consumer Financial Protection Bureau. For starters, this is a watchdog that was created by the Congress to help the United States deal with the financial meltdown. Should have the deal passed, financial institutions in America could have become open to lawsuits that would have cost them billions of dollars wherever there is a questionable business practice. The new legislation had been drafted to address the arbitration clauses that are put in place by banks and credit card companies on their customers.
These arbitration clauses are supposed to be used in the future when customers wish to sue the companies for questionable practices. Arbitration means that the issues at hand can only be settled privately ensuring that these businesses remain deceptive and predatory. This has been the issue in regards to unfair fees, discrimination when selling cars and financial gouging. These efforts to control the financial industry have been ongoing in the last few years. Should have the rules passed, individuals would have been given the power to sue these companies in a court of law. This is a bureau that has been tough on payday lenders, the student loan industry as well as debt collectors. The bureau recently did away with a law that outlawed payday loans in over 47 states. The rule was to go down in one way or the other after several forces joined together to abolish it. This includes Republican members in the House, financial firms and the US Chamber of Commerce. The Republicans had been given 60 days by the Congressional Review Act to do away with the law. South Carolina Senator Lindsey Graham was one of the Republicans who refused to vote for the law.