House Republicans voted Tuesday to repeal a controversial regulation that would allow more consumers to sue their banks.
Bloomberg reports lawmakers, in a 231-to-190 vote, passed legislation that would overturn a Consumer Financial Protection Bureau rule that restricts lenders from forcing customers to settle disputes through arbitration.
The bill now heads to the Senate, where it faces a tougher path because it will probably fail if just three Republicans vote against it.
The regulation has faced a litany of criticism from bank lobbying groups and GOP lawmakers since the CFPB approved it earlier this month. While the CFPB says the rule will help ensure that consumers get their day in court, opponents argue that it risks exposing lenders to a wave of frivolous lawsuits that will mostly enrich trial lawyers.
To try to overturn it, congressional Republicans are relying on an obscure law called the Congressional Review Act, which requires only a simple majority vote to pass. Senate Republicans, led by Banking Committee Chairman Mike Crapo, have already introduced their own version of a bill that reverses the CFPB rule.
Sen. John Kennedy is the only Republican on the banking panel who didn’t co-sign Crapo’s bill. The Louisiana senator says he hasn’t decided how he will vote because he hasn’t yet had a chance to review the issue.
