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

27. October 2017.

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.

We will be happy to hear your thoughts

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