CFPB Moves To Allow Class Action Lawsuits Against Financial Institutions

The CFPB adopted a rule this week that would prevent credit card companies and banks from requiring customers to settle disputes by arbitration rather than through litigation in court. This will allow consumers to file class action suits, which is necessary to protect consumers from the small scale fraud practiced routinely by large corporations. Arbitration is costly, often favors the large banks and there is no right to appeal an arbitrator’s decision. Kudos to the CPB and Director Cordray.

 

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