Suing Banks Will Be Much Easier If U.S. Regulator Gets Its Way
- CFPB targets arbitration in plan to allow class-action suits
- Industry says rule would increase legal costs, hurt consumers
COLUMBUS, OH - MAY 18: Andrew Scott's 'Gavel' sculpture sits outside The Supreme Court Of Ohio on May 18, 2014 in Columbus, Ohio. (Photo By Raymond Boyd/Getty Images)
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Suing your bank will become a lot easier if a U.S. regulator has its way.
At issue are terms that companies routinely insert in contracts for credit cards, payday loans and other products that require consumers to settle disputes through arbitration. The Consumer Financial Protection Bureau plans to propose a rule Thursday that would circumvent those clauses by allowing groups of people to join together to pursue class-action lawsuits when they feel they’ve been wronged.