Lawmakers have passed repeal legislation to stop a controversial rule that would have allowed borrowers to file class-action lawsuits against financial institutions. The president is expected to sign it.
A Consumer Financial Protection Bureau rule that was set to take effect in March would have banned provisions that block borrowers from banding together to bring class-action cases.
The CFPB argued that such cases help hold banks accountable. But banking lobbyists argued that the rule would unleash a flood of class-action lawsuits — raising the cost of credit for consumers.
Source: Mortgage Daily