Class Actions Blog

Archive for the ‘Class Action Facts’ Category

Senate Republicans kill CFPB rule banning forced arbitrations

Posted on: October 26th, 2017 by Steve Larson

Senate Republicans narrowly passed a resolution to kill a recently adopted Consumer Financial Protection Bureau (CFPB) rule prohibiting financial firms from requiring customers to resolve any disputes with the firms through individual arbitrations. Big banks and credit card companies routinely include so-called forced arbitration provisions in their account agreements, which prohibit class action.

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Media just becoming aware that Georgia Representative is seeking to gut the Fair Credit Reporting Act to protect Equifax

Posted on: September 27th, 2017 by Steve Larson

Many articles are now appearing pointing out that Georgia Representative Loudermilk proposed a bill to gut the regulations applicable to Equifax (which is headquartered in Georgia) just before the data breach became public. Here are links to the articles:

Vanity Fair

New Republic

NBC News

Wall Street Journal (paid subscription required)

Law.com

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SEC Commissioner suggests that SEC will allow corporations to put mandatory arbitration clauses into their charters to avoid shareholder securities fraud class actions

Posted on: August 29th, 2017 by Steve Larson

A brief remark from SEC Commissioner Michael Piwowar during a July 17, 2017, Q&A suggests that he believes the U.S. Securities and Exchange Commission might soon allow companies to introduce mandatory arbitration clauses into their corporate charters. If the SEC were to allow such an action, required arbitration would have a fundamental, adverse effect on the ability of investors to protect themselves against wrongdoing by corporations and their directors and officers. If mandatory arbitration were to be widely adopted, investors could be prohibited from asserting claims in federal court under the federal securities laws, which would effectively result in the loss of the very protections that these laws were designed to provide.

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Economic Policy Institute issues report saying average consumer does better in a class action than in arbitration

Posted on: August 1st, 2017 by Steve Larson

The Economic Policy Institute just released a fact sheet debunking industry claims that consumers recover more money in arbitration than class actions. They re-examined data from the CFPB study and found that the average consumer is ordered to pay their bank or lender $7,725 in arbitration.

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Republicans move to invalidate new CFPB rule banning forced arbitration

Posted on: July 21st, 2017 by Steve Larson

On July 20, 2017, Congressional Republicans began a process to attempt to eliminate a Consumer Financial Protection Bureau rule that stops companies from putting class action bans in their arbitration clauses and makes it easier for consumers to sue banks, credit card firms, payday lenders and other service providers in court. Republican members of the Senate Banking Committee and the House Financial Services Committee filed resolutions disapproving of the CFPB’s arbitration rule, putting in motion a process under the Congressional Review Act that could see the bureau’s regulation invalidated.

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Article in The Hill explains why the new CFPB banning mandatory arbitration is a good thing

Posted on: July 13th, 2017 by Steve Larson

Paul Bland has written an excellent article in The Hill that reviews the background behind the publication of the new CFPB rule banning mandatory arbitration, and addresses the merits and criticisms of the new rule.

Here is the link.  http://thehill.com/blogs/pundits-blog/finance/341472-who-will-gop-lawmakers-stand-with-the-people-or-crooked-bankers.

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The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.

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This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.

About the author

  • Steve Larson

  • Steve Larson
  • Steve Larson has been representing investors, consumers and employees in class actions in Oregon for over 20 years. He is a shareholder at the law firm of Stoll Berne in Portland, Oregon.
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