CFPB Moves to Ban Companies From Using Mandatory Arbitration

"The Consumer Financial Protection Bureau (CFPB) announced a new rule that will disallow companies from using mandatory arbitration clauses that often prevent groups from having their day in court. The move by the CFPB was announced through a press release on July 10," according to the Student Loan Report.
 
"Consumer financial products such as credit cards and bank accounts often have arbitration clauses that prevent consumers from coming together to sue their banks or financial companies for wrongdoing.
 
Because customers have been forced to stop trying to sue, or sue alone for a very tiny amount, large financial companies can avoid the courts and lawsuits.
 
The hope is that the CFPB’s new rule will prevent wrongdoing by giving the consumers the right to join together to pursue justice and relief through group lawsuits."
 
NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 7/17/2017

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