U.S. Agency Moves to Allow Class-Action Lawsuits Against Financial Firms

The New York Times (07/10/2017)
  • The Consumer Financial Protection Bureau (CFPB) recently adopted a rule allowing consumers to file class action lawsuits against financial institutions.
  • Currently, banking and credit card contracts force consumers to agree to handle any disputes via private arbitration.
  • “Prevented from banding together in a class and pooling their resources, most people simply abandon their claims entirely, never making it to arbitration at all”.
  • Congressional republicans and Trump will probably fight the rule “ to lighten regulation on the financial industry”.