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Senate Immunizes Wells Fargo, Equifax and Other Financial Wrongdoers From Consumer Lawsuits

CFPB Arbitration Rule Overturned; Sen. Ron Johnson Votes to Strip Consumers of Their Rights
For Immediate Release.

Last night, the U.S. Senate voted to overturn the Consumer Financial Protection Bureau’s new rule on forced arbitration that would have allowed consumers to band together in class action lawsuits when they are wronged by corporate wrongdoers. Vice-President Pence cast the tiebreaking vote after a 50-50 deadlock. WISPIRG Director Peter Skopec issued the following statement in response:

“The Consumer Bureau’s rule banning the Rip-Off Clause in financial contracts was a huge step forward for consumers. Last night’s vote by the Senate to undo these important protections, by contrast, serves Equifax, Wells Fargo and other corporate wrongdoers well. It leaves consumers, including veterans and servicemembers, unable to self-police an epidemic of financial crime.

We’re deeply disappointed that Senator Johnson decided to vote so very clearly against the interests of his constituents back in Wisconsin. We urge the President to veto this harmful resolution that would keep victims of financial wrongdoing from the courthouse doors.

Reckless Wall Street chiefs and predatory payday lenders have now won a Congressional green light to pick consumers’ pockets with unfair and deceptive fees and practices. We must redouble our efforts to defend the Consumer Financial Protection Bureau itself as corporate wrongdoers, Wall Street interests and their allies in Washington relentlessly seek to dismantle it.”

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The Wisconsin Public Interest Research Group (WISPIRG) is a non-profit, non-partisan public interest advocacy organization that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society.

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