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. [Read more…]

Public Comment Period on Proposed U.S. Agency Rules to Stop Corporate “Contract Gotchas” Begins

Public Comment Period on Proposed U.S. Agency Rules to Stop Corporate ‘Contract Gotchas’ Begins Today

In a move intended to level the playing field between the American public and corporations with regard to contract disputes on financial products, the U.S. Consumer Financial Protection Bureau (CFPB) proposed new rules this month that would limit corporations’ ability to force citizens away from the court system and into mandatory arbitration. Proposed new rules by U.S. agencies like the CFPB trigger a statutory 90-day public comment period, and for these new rules that period began on May 24, 2016. [Read more…]

CFPB Rule Proposes to Modify Mandatory Arbitration Clauses in Favor of Consumers

CFPB Rule Proposes to Modify Mandatory Arbitration Clauses in Favor of Consumers

The Consumer Financial Protection Board (CFPB) has proposed a new rule that would modify mandatory arbitration clauses and, ultimately, restore consumers’ fundamental right to class action courtroom trials against financial institutions. In the new proposal, while financial institutions may still impose a requirement of having individual disputes handled by private arbitration, class action lawsuits are no longer forbidden. [Read more…]

Elizabeth Cabraser Comments on New CFPB Proposal Regarding Arbitration Clauses

Judge's Gavel

The federal Consumer Financial Protection Bureau (CFPB) proposed a potentially transformative new rule on Thursday regarding forced arbitration agreements that strip consumers of financial products of their basic constitutional rights. If approved, the proposed rule will bar financial institutions like banks and credit card companies from using forced arbitration clauses to prevent consumers from filing class action lawsuits. These clauses left consumers with no court options and locked them into unbalanced private arbitration to their widespread detriment. [Read more…]

New Rule from Consumer Financial Protection Bureau Would Restore Consumers’ Rights to Collective Action Against a Predatory Financial Industry

Banks Get Boot from Forced Arbitration

If the new Rule is approved, banks will no longer be able to use forced arbitration clauses to ban consumers from joining together in class action lawsuits, seen as most effective consumer option in fighting illegal practices

After an extensive new study that conclusively proved how unfair and destructive fine print “forced arbitration” clauses have been for consumers, the Consumer Financial Protection Bureau (“CFPB”) has issued a new rule forbidding banks from forcing consumers into non-trial unbalanced arbitration hearings as their only recourse when a bank has cheated them. If approved, this landmark rule will be a huge gain for consumers, who have been suffering from bank schemes and illegal manipulations without any real means to fight back. [Read more…]

CFPB Proposal to Regulate Arbitration Agreements

CFPB Proposal to Regulate Arbitration Agreements Results in Pushback from Consumer Finance Industry

On October 7, 2015, the Consumer Financial Protection Bureau (CFPB) announced its proposal to regulate the aggressive use of arbitration agreements in consumer financial services contracts and “give consumers their day in court.” These consumer financial services include: bank accounts, private student loans, credit cards, auto loans, money transfer services, small dollar or payday loans, and installment loans. [Read more…]