New Rule Would Allow Consumers to Fight Back in Class Actions Against Banks
Most agreements between corporations and consumers contain arbitration agreements that in the event a dispute arises bar any judicial action and in particular class actions. Class actions are often the only feasible way to hold companies accountable for wide-spread wrongdoing with small amounts of damages and potential recovery for consumers. The federal Consumer Financial Protection Bureau announced a proposed rule that would bar certain arbitration clauses to restore customers’ rights to bring class-action lawsuits against financial firms. It would apply to bank accounts, credit cards and other types of consumer loans. Click here to read more.