The Consumer Financial Protection Bureau wants to rewrite some fine print. When you hire a financial advisor or get a credit card, you generally sign a contract. A provision in such contracts require that any disputes go to binding arbitration. In other words, no matter how badly used you are, you can’t sue.
The New York Times puts it like this: the agency proposes to “unravel a set of audacious legal maneuvers by corporate America that has prevented customers from using the court system to challenge potentially deceitful banking practices.” When you CAN sue, you can join a class action suit, combining resources to equal a company’s lawyerly clout.
One can hardly blame a company for trying to rig the table. But a rule that prevents this would be good for consumers, including those not actually suing.
Because when companies know they can't get away with something they tend to focus on other stuff, like, you know, good service.
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