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American Legion calls on Trump to veto bill making it tougher to sue banks

American Legion calls on Trump to veto bill making it tougher to sue banks
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The American Legion on Thursday called for President TrumpDonald TrumpIran convicts American businessman on spying charge: report DC, state capitals see few issues, heavy security amid protest worries Pardon-seekers have paid Trump allies tens of thousands to lobby president: NYT MORE 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.

“Every servicemember and veteran should have the right and responsibility to confront predatory loan practices,” American Legion National Commander Denise Rohan said.

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The resolution would shut down a Consumer Financial Protection Bureau (CFPB) rule that would allow consumers to band together to sue banks and credit card companies. It passed 51-50 in the Senate, with Vice President Pence casting the tie-breaking vote.

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.

Trump is expected to sign the resolution into law.

“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.