>> Amid rising tensions within the GOP, Senate Republicans coming together to kill an Obama era rule that would've allowed American consumers to file class action lawsuits against banks, credit card companies, and other financial institutions. Reuters correspondent Lisa Lambert covered the vote.>> Well last night was really exciting with Mike Pence showing up on Capitol Hill at 10 o'clock at night in order to break the tie on this vote.
And really what we had seen before in the debates leading up to the vote was each side, the Republicans and the Democrats, accusing the others of standing up for the elites and sacrificing the little guy. What Republicans say is that this arbitration rule had put the interests of trial attorneys who tend to profit from class action lawsuits ahead of ordinary consumers who just want reasonable resolution to their problems.
Democrats describe arbitration as a secretive, closed door process that's really rigged against the consumers. They say the companies hire the arbitrators, and there's no public record of what agreement is reached. And there's no legal precedents set. They also say that it denies consumers the right to go to court, which is part of the Constitution.
>> Financial institutions have for years inserted arbitration clauses into the fine print of contracts to get around the courts. Victims of the massive Equifax hack were outraged last month when the company included forged arbitration fine print in offering them free credit monitoring. The company later removed those clauses.
Bank lobbying groups cheered the vote, which is seen not only as a win for Wall Street but also for a party that's struggled to fallow through on it's legislative priorities.