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Consumer groups say arbitration diminishes legal protections for everyday people and prevents them from joining together to bring class-action lawsuits.
Critics in the financial industry and Congress say arbitration provides a faster and more cost-effective way to resolve disputes with consumers.
“This bureaucratic rule will harm American consumers but thrill class-action trial attorneys,” House Financial Services Committee Chairman Jeb Hensarling (R., Texas) said in a statement. “This anti-consumer rule should be thoroughly rejected by Congress under the Congressional Review Act.”
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