Article by F. PAUL BLAND JR., OPINION CONTRIBUTOR at “The Hill” – 07/11/17 01:40 PM EDT
Executive Director, Public Justice
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In May 2016, the Consumer Financial Protection Bureau (CFPB) proposed a new rule designed to rein in some of the worst behaviors of big banks and predatory lenders.
For decades, these financial institutions have been using forced arbitration clauses — fine-print language usually buried deep within multi-page agreements with a consumer — to wipe away customers’ rights to band together and sue them in court. These clauses allowed banks and payday lenders, among others, to break the law, trick their customers in illegal ways and not have to face any consumer lawsuits.
After a lengthy empirical study proved, beyond doubt, that forced arbitration clauses harmed consumers and enabled banks to break the law and get away with it, the CFPB has issued a rule banning forced arbitration clauses with class action bans in financial services contracts.
Read more here.