The American Legion on Thursday called for President Trump to veto legislation that would effectively kill a rule that would have made it easier for consumers to sue banks and credit card companies.
The American Legion, a veterans organization, said in a statement that the resolution passed by the Senate on Wednesday night would deprive veterans and military service members of the ability to challenge unfair financial practices.
The resolution would shut down a Consumer Financial Protection Bureau rule that would allow consumers to band together to sue banks and credit card companies.
Without the rule, consumers are likely to have to enter into mandatory arbitration clauses with financial institutions, meaning that they must settle disputes in arbitration rather than in court.
“Our membership has stated unequivocally that we are opposed to situations where our military and veterans’ financial protections are chipped away to increase the profits of the big banks,” Rohan said.
“Repealing the CFPB arbitration rule takes away consumers’ most effective tool to protect themselves against predatory lenders,” she said.