A Kings County New York Judge has ruled that Uber cannot force arbitration on a customer, finding that Uber had not proven that the customer agreed to arbitrate disputes when she signed up on-line for Uber’s services.
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.
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.
U.S. District Judge James Lawrence King ruled this week that Wells Fargo cannot force unnamed class members’ claims into arbitration in five lawsuits arising out of alleged improper re-ordering of overdraft fees that have been consolidated in multidistrict litigation in Florida.
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.
Preparations are underway for the Democratic Convention in Philadelphia. The Draft Democratic Platform unequivocally supports an individual’s right to his or her day in court and efforts to limit forced arbitration clauses in employment and service contracts.
In The Arbitration Epidemic: Mandatory Arbitration Deprives Workers And Consumers Of Their Rights, Katherine V.W. Stone and Alexander J.S. Colvin outline the problems posed by mandatory arbitration and explain how, in a series of rulings, the Supreme Court has freed up large corporations to sidestep the legal system through arbitration clauses.
Yesterday, following three years of intense research, empirical studies, and analysis, following dozens of submissions by a wide range of stakeholders including thousands of pages, the Consumer Finance Protection Bureau issued its Final Report, mandated by Congress in the Dodd-Frank Act, as to the effects of mandatory arbitration/class action waivers. From the CFPB press release:
The Oregon Attorney General, Ellen Rosenblum, and 15 other attorneys general have sent a letter to the Consumer Financial Protection Bureau asking the federal government to adopt rules that protect consumers from mandatory arbitration clauses in important contracts.
The New York Times reported that General Mills, one of the country’s largest food companies, on Saturday night announced in a stunning about-face that it was withdrawing its controversial plans to make consumers give up their right to sue it.