Lieff Cabraser Civil Justice Blog
CFPB Under Big Bank Attack for Upholding Consumers' Rights

CFPB Under Big Bank Attack for Upholding Consumers’ Rights

The Huffington Post has published an important op-ed piece by Paul Bland, Executive Director of Public Justice, about the banking industry’s increasingly dishonest and desperate attacks on the Consumer Financial Protection Bureau’s new forced arbitration ban that is intended to allow consumers to be able to work together via class action lawsuits to defend their rights in the face of fraud and predatory practices by banks. The banks want the rule destroyed so that they can be left unaccountable for the kinds of fraud and predatory actions that have made recurrent and shocking headlines over the last several years.

As Bland puts it,

“If you’ve been following the debate in Washington over forced arbitration, you know that there’s been one all-consuming issue: whether Congress will overturn the Consumer Financial Protection Bureau’s (CFPB’s) rule prohibiting class-action bans in arbitration agreements for consumer financial products before the deadline (which is probably November 13) to do so via the Congressional Review Act (CRA), a law that allows Congress to intervene and kill an agency’s rule within a set number of days.

“The CFPB rule was the result of years of data-based study, ultimately concluding that consumers are better off if they can band together in court to hold big banks – like Wells Fargo, for example — liable when those banks break the law. Individual consumers rarely find it worthwhile to pursue small claims in arbitration on their own, and even if they did, because arbitration is secret, it would not stop big banks from continuing their lawless practices.”

The full article is available on the Huffington Post website.

About Public Justice

Public Justice pursues high impact lawsuits to combat social and economic injustice, protect the Earth’s sustainability, and challenge predatory corporate conduct and government abuses. The Public Justice Foundation is a not-for-profit, charitable membership organization that supports Public Justice’s cutting-edge litigation and educates the public about the critical issues it addresses. Membership includes leading trial lawyers, appellate lawyers, consumer advocates, environmental attorneys, employment lawyers, civil rights attorneys, class action specialists, law professors, law students, public interest advocates, and other people who care about justice. Learn more at publicjustice.net.