Banks and Credit Card Companies Just Scored a Big Win. What Does It Mean for Consumers?

Elizabeth Dexheimer:

So, the status quo that you just described will continue. You mentioned it’s arbitration agreements. These are very common.

And when you open a checking account or a credit card, you typically sign a contract with this clause that says you will not join together with other consumers in a class-action lawsuit, and that if you have got a problem with your bank, you think that they’re overcharging you or some — a grievance that you have, you’re going to resolve that through a closed-door arbitration process, instead of arguing it in open court.

This is an issue that, as part of the Dodd-Frank law, following the financial crisis, the consumer Financial Protection Bureau was told to study this issue. They did. They published a report. And based on those findings, they crafted this rule.

Since the beginning, for years, Republicans and the financial services industry has been against it and been pushing back.

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