Banks Can, and Often Do, Keep You From Joining Class-Action Lawsuits—What Can Be Done

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Projects: Consumer Banking & Consumer Finance

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Banks Can, and Often Do, Keep You From Joining Class-Action Lawsuits—What Can Be Done

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Did you know that banks in the U.S. can use clauses buried in fine print to prevent you from bringing disputes over unfair fees to court? But together we can change it, with the help of the Consumer Financial Protection Bureau. Tell them you want the right to participate in class-action lawsuits and hold banks accountable: http://pew.org/29lJPf2.

Watch our animation to see why it's so important that the CFPB stop banks from banning class action lawsuits in arbitration clauses. Then tell the CFPB you support its proposal to give people back their right to hold banks accountable.

Learn more about Pew's work to improve consumer protections in the financial marketplace: http://www.pewtrusts.org/en/projects/consumer-banking.

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CFPB to Act on Banking Dispute Resolution
CFPB to Act on Banking Dispute Resolution
Article February 16, 2016

CFPB to Act on Banking Dispute Resolution

Proposal would protect class-action rights
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CFPB to Act on Banking Dispute Resolution
Article February 16, 2016

Many contracts for credit cards, checking accounts, prepaid cards, and other financial products include mandatory arbitration clauses, which forbid consumers from settling disputes in court, either individually or as part of a group (or class action), and require them instead to participate in arbitration. In October 2015, the Consumer Financial Protection Bureau announced that it was considering a ban on mandatory arbitration agreements that prohibit class actions. In light of our research showing that these clauses inflict harm by limiting customers’ recourse, Pew urges the CFPB to institute the ban promptly.

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Opinion May 11, 2016

Customers Want to Join Together to Hold Financial Institutions Accountable

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Opinion May 11, 2016

In a recent survey, The Pew Charitable Trusts asked consumers their opinions about mandatory binding arbitration. One issue in particular rankles them and is now under scrutiny by regulators: the ubiquitous inclusion in arbitration agreements of language that bars customers from pursuing their claims against a financial services company as part of a class action.

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