Share:

" />
Published On: Thu, Oct 8th, 2015

CFPB May Finally Grant Customers Right to Sue Banks

Susanne Posel (OC) : The Consumer Financial Protection Bureau (CFPB) is considering banning banks and other financial institutions from forcing arbitration instead of allowing customers to sue in order to deflect class-action lawsuits which have huge payouts.

Banks_Bail in_SP_OCThis arbitration clause effects tens of millions of banking customers annually by limiting their legal restitution rights when disputing their banking institution.

According to Pew Research, 66% of checking account agreements have mandatory arbitration clauses, 98% have restrictions waving customer right to a jury trial, and 32% require customers to pay for arbitration and other expenses.

Part of the problem is the bank’s allowance to choose a private arbitrator which is approved by the banker, not the customer. Because the decisions of the arbitrator are final and not reviewable, the favor is with the banks.

Richard Corday, director of the CFPB, said: “Consumers should not be asked to sign away their legal rights when they open a bank account or credit card. Companies are using the arbitration clause as a free pass to sidestep the courts and avoid accountability for wrongdoing.”

Corday continued: “The proposals under consideration would ban arbitration clauses that block group lawsuits so that consumers can take companies to court to seek the relief they deserve.”

Banks, credit card corporations, and student loan institutions include an arbitration clause in their contracts to circumvent the potential that customers could take them to court.

These clauses traditionally bar customers from joining class-action lawsuits against the bank; forcing them into arbitration.

To help the banking industry force arbitration, the US Supreme Court ruled 2 years ago that corporations have the right to set their own rules in order to resolve disputes with customers; as well as limit the amount of class-action lawsuits that could be filed against them.

This case neglected to address the fact that forced arbitration “improperly limits customer’s options and potential recovery.”

Susanne Posel, Occupy Corporatism

About the Author

- Susanne Posel is the Chief Editor of OccupyCorporatism and a globally syndicated host of the Region 10 Report broadcast on American Freedom Radio. Susanne Posel is a productive writer of news, opinion and analysis on a wide range of subjects, including globalism, corporatism and the New World Order. Other subjects include eugenics, climate change controversies, martial law, the technocratic banking elite and second amendment rights. Susanne Posel is a political and social activist, believing in non-compliance. Susanne Posel´s articles are widely published in independent or alternative media. She has been featured on radio shows such as The Hagman & Hagman Report, Wide Awake News with Charlie McGrath, Red Ice Radio, Lorrie´s Talk News Radio, The Vinny Eastwood Show, SGT Report, The Corbett Report, United We Strike Monthly Marathon. Susanne Posel began contributing to nsnbc international in June 2013. She can be contacted by e-mail at occupycorporatism@gmail.com

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>