On Aug. 18, The Pew Charitable Trusts sent a letter to the Consumer Financial Protection Bureau (CFPB) in support of the bureau’s proposed rule on pre-dispute arbitration. The draft regulation would prohibit the use of pre-dispute arbitration clauses in financial agreements as a means to avoid class action lawsuits and would allow the CFPB to collect data on arbitration proceedings.
Class actions are often the only viable remedy for consumers who are treated unlawfully, and the widespread use of pre-dispute arbitration clauses with class action bans makes this rule vital for the protection of consumers and the promotion of a fair and level financial playing field.
Consumers Want to Resolve Bank Disputes in Court
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CFPB to Act on Banking Dispute Resolution
Proposal would protect class-action rights