The rule disallowed a customer’s right to sue, individually or as a group, in the event of them becoming a customer of a financial company, including a bank; the banning of their rights is irrespective of any wrongdoing or misconduct by the financial company.
In a significant development, a Republican led motion in the U.S. Senate has done away with a new ban on financial companies which requires customers to surrender their right to sue in order to open accounts.
Republican Vice President Mike Pence appeared on the floor at 10:11 p.m. EDT to cast the tie-breaking vote as Senate president, putting the final count at 51-50.
The development comes in the wake of the Republican-dominated House of Representatives passing a resolution repealing the Consumer Financial Protection Bureau (CFPB) rule that came out this July.
U.S. President Donald Trump, a Republican, is expected to quickly sign the resolution, which also bars regulators from instituting a similar ban in the future.