Maxine Waters

Republicans target arbitration rule for consumers

Republicans are targeting a rule that would let consumers band together to sue their banks or credit card companies rather than use a mediator to resolve a dispute.

The Consumer Financial Protection Bureau finalized the rule last week. The rule bans most types of mandatory arbitration clauses, which require customers to use a mediator. The agency said people who otherwise have to go it alone in resolving a financial dispute should be able to join others in a class-action lawsuit to pursue a remedy to their complaint.

Republicans said Thursday that going that route will increase the costs of borrowing for millions of consumers while enriching trial lawyers who file the...