CFPB Likely to Pass New Arbitration Rules

[think]

CFPB Likely to Pass New Arbitration Rules

December 28, 2016, Written By John H. Oldshue

It is likely that the Consumer Financial Protection Bureau (CFPB) will finalize rules which will ban banks from implementing arbitration clauses that prevent customers from filing class-action lawsuits.

Forbes reported that Alan Kaplinsky, leader of the Consumer Financial Services Group for the firm Ballard Spahr LLP, recently said there was an 80% chance the rule will be finalized before Donald Trump takes office on January 20, 2017.

“The proposed arbitration rule is very simple (unlike the proposed small-dollar loan rule),” he pointed out. “The Obama administration is encouraging all executive agencies to complete as many rules as possible before Jan. 20.”

The bill became particularly newsworthy this November when Senate Banking Committee Ranking Minority Member Sen. Sherrod Brown (D-OH) and Rep. Brad Sherman (D-CA) created the Justice for Victims of Fraud Act. Brown and Sherman both believe Wells Fargo customers should be able to sue the financial institution for creating fake accounts in their names instead of going through private arbitration. In September, the bank was fined $185 million for opening millions of fake accounts, but its arbitration clause stops affected customers from suing Wells Fargo or joining class-action lawsuits...

Read more:
http://www.lowcards.com/cfpb-likely-to-pass-new-arbitration-rules-46740

[marybourg]

1. About time. Thanx Obama! nt.

[annabanana]

2. I certainly hope they make the deadline. This should serve as

a template for ALL hogtying of class action suits, the only defense of the small against the massive.