New U.S. rule on class actions survives first challengeWASHINGTON (Reuters) - A new U.S. rule aimed at restoring consumers’ ability to band together to sue financial companies has survived its first challenge, as a top banking regulator on Monday said he would not petition for it to be suspended. The Consumer Financial Protection Bureau’s rule abolishing “mandatory arbitration clauses” was released on July 10, and was immediately threatened by Republicans in Congress and President Donald Trump’s administration. Acting U.S. Comptroller of the Currency Keith Noreika publicly argued with CFPB Director Richard Cordray, appointed by former President Barack Obama, a Democrat, over whether the rule could endanger the banking system.  Many had expected Noreika to ask colleagues on the Financial Stability Oversight Council consisting of the country’s chief financial regulators to stay the rule. But in Monday’s statement he said he was unable to complete a thorough review of the rule in time to make a petition. “Nothing so far diminishes my concerns that the rule may adversely affect the institutions within the federal banking system and their customers,” Noreika said, adding it “may have unintended consequences” such as increased costs. The CFPB declined to comment. Still, Noreika backing down was a victory for the independent agency, which spent years researching and writing the rule.  The rule bans companies from requiring customers to sign an agreement when opening new accounts that they will not join a group lawsuit, or class action, in the event of a dispute. Instead they must take disputes to secret arbitration. Critics of the rule say class actions mostly benefit lawyers, while arbitration is quick, cost-effective, and renders large awards for complainants.  Supporters, though, say citizens are entitled to a day in court and companies often hire the arbitrators, rigging the process against the customers. They also say public proceedings are effective at ending bad corporate behavior. “The rule is a well thought-out response to the serious consumer harm of forced arbitration,” said Brian Marshall, policy counsel for advocacy group Americans for Financial Reform.  Noreika’s threat is not the only one levied against the regulation. But it was the first time a stay from the oversight council was seriously considered to dismantle a rule. Noreika added he hopes congressional efforts to kill the  rule succeed. Even though the House of Representatives passed a resolution repealing it earlier this month, Republicans hold a slimmer majority in the Senate and will struggle to gather enough votes for a similar resolution, analysts said.politicsNews
new rule class actions survives first challengewashington reuters a new rule aimed restoring consumers ability band together sue financial companies survived first challenge top banking regulator monday said would petition suspended the consumer financial protection bureau rule abolishing mandatory arbitration clauses released july immediately threatened republicans congress president donald trump administration acting comptroller currency keith noreika publicly argued cfb director richard portray appointed former president barack obama democrat whether rule could endanger banking system many expected noreika ask colleagues financial stability oversight council consisting country chief financial regulators stay rule but monday statement said unable complete thorough review rule time make petition nothing far diminishes concerns rule may adversely affect institutions within federal banking system customers noreika said adding may unintended consequences increased costs the cfb declined comment still noreika backing victory independent agency spent years researching writing rule the rule bans companies requiring customers sign agreement opening new accounts join group lawsuit class action event dispute instead must take disputes secret arbitration critics rule say class actions mostly benefit lawyers arbitration quick renders large awards complainant supporters though say citizens entitled day court companies often hire arbitrators rigging process customers they also say public proceedings effective ending bad corporate behavior the rule well response serious consumer harm forced arbitration said brian marshall policy counsel advocacy group americans financial reform noreika threat one levied regulation but first time stay oversight council seriously considered dismantle rule noreika added hopes congressional efforts kill rule succeed even though house representatives passed resolution repealing earlier month republicans hold swimmer majority senate struggle gather enough votes similar resolution analysts
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: New U.S. rule on class actions survives first challengeWASHINGTON (Reuters) - A new U.S. rule aimed at restoring consumers’ ability to band together to sue financial companies has survived its first challenge, as a top banking regulator on Monday said he would not petition for it to be suspended. The Consumer Financial Protection Bureau’s rule abolishing “mandatory arbitration clauses” was released on July 10, and was immediately threatened by Republicans in Congress and President Donald Trump’s administration. Acting U.S. Comptroller of the Currency Keith Noreika publicly argued with CFPB Director Richard Cordray, appointed by former President Barack Obama, a Democrat, over whether the rule could endanger the banking system.  Many had expected Noreika to ask colleagues on the Financial Stability Oversight Council consisting of the country’s chief financial regulators to stay the rule. But in Monday’s statement he said he was unable to complete a thorough review of the rule in time to make a petition. “Nothing so far diminishes my concerns that the rule may adversely affect the institutions within the federal banking system and their customers,” Noreika said, adding it “may have unintended consequences” such as increased costs. The CFPB declined to comment. Still, Noreika backing down was a victory for the independent agency, which spent years researching and writing the rule.  The rule bans companies from requiring customers to sign an agreement when opening new accounts that they will not join a group lawsuit, or class action, in the event of a dispute. Instead they must take disputes to secret arbitration. Critics of the rule say class actions mostly benefit lawyers, while arbitration is quick, cost-effective, and renders large awards for complainants.  Supporters, though, say citizens are entitled to a day in court and companies often hire the arbitrators, rigging the process against the customers. They also say public proceedings are effective at ending bad corporate behavior. “The rule is a well thought-out response to the serious consumer harm of forced arbitration,” said Brian Marshall, policy counsel for advocacy group Americans for Financial Reform.  Noreika’s threat is not the only one levied against the regulation. But it was the first time a stay from the oversight council was seriously considered to dismantle a rule. Noreika added he hopes congressional efforts to kill the  rule succeed. Even though the House of Representatives passed a resolution repealing it earlier this month, Republicans hold a slimmer majority in the Senate and will struggle to gather enough votes for a similar resolution, analysts said.politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: new rule class actions survives first challengewashington reuters a new rule aimed restoring consumers ability band together sue financial companies survived first challenge top banking regulator monday said would petition suspended the consumer financial protection bureau rule abolishing mandatory arbitration clauses released july immediately threatened republicans congress president donald trump administration acting comptroller currency keith noreika publicly argued cfb director richard portray appointed former president barack obama democrat whether rule could endanger banking system many expected noreika ask colleagues financial stability oversight council consisting country chief financial regulators stay rule but monday statement said unable complete thorough review rule time make petition nothing far diminishes concerns rule may adversely affect institutions within federal banking system customers noreika said adding may unintended consequences increased costs the cfb declined comment still noreika backing victory independent agency spent years researching writing rule the rule bans companies requiring customers sign agreement opening new accounts join group lawsuit class action event dispute instead must take disputes secret arbitration critics rule say class actions mostly benefit lawyers arbitration quick renders large awards complainant supporters though say citizens entitled day court companies often hire arbitrators rigging process customers they also say public proceedings effective ending bad corporate behavior the rule well response serious consumer harm forced arbitration said brian marshall policy counsel advocacy group americans financial reform noreika threat one levied regulation but first time stay oversight council seriously considered dismantle rule noreika added hopes congressional efforts kill rule succeed even though house representatives passed resolution repealing earlier month republicans hold swimmer majority senate struggle gather enough votes similar resolution analysts