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.
A shareholder in Zillow Group Inc. has filed a class action against the company alleging that the company should have told investors about its practices, which recently led to an investigation by the Consumer Financial Protection Bureau (“CFPB”).
An interesting article in the American Banker Magazine says that the hoopla surrounding the Equifax data breach, including Equifax’s efforts to force consumers into arbitration after the data breach, may mean doom for GOP efforts to reverse the rule adopted by the CFPB that bans forced arbitration and class action waivers.
The Multi-State letter opposes restrictions Congress is contemplating on a new rule passed by the CFPB that would prohibit banks from requiring consumers to waive their right to seek redress in court.
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.
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.
On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) announced a new rule to ban companies from using mandatory arbitration clauses to deny groups of people their day in court.
According to a story published in the Hill, Wells Fargo’s scandalous practice of secretly opening more than 2 million sham deposit and credit card accounts dragged on for at least five years, because Wells Fargo contract provisions blocked consumers from suing the bank in court.
Consumers who use RushCards to purchase groceries, gas and pay for other expenses recently were unable to use their cards for cash withdrawals or purchases, and some reported that their account balances did not include recent pay deposits and reported erroneous balances.
The financial services industry is already opposing the Consumer Financial Protection Bureau’s moves to restrict arbitration clauses on credit card, bank account and other contracts, and could challenge in court any final rules using recent U.S. Supreme Court rulings and even the Dodd-Frank Act itself against the bureau.