Bloomberg Law
July 10, 2017, 9:13 PM UTC

CFPB Issues Rule Making It Easier for Consumers to Sue Banks

Bloomberg Media

By Elizabeth Dexheimer, Bloomberg News

The U.S. Consumer Financial Protection Bureau is making it easier for customers to sue banks, a move sure to rile Wall Street and congressional Republicans.

Financial firms will be restricted in using mandatory arbitration to block class-action lawsuits, the CFPB said in a statement Monday. Clauses requiring arbitration to settle disputes are inserted routinely in contracts for credit cards, payday loans and other financial products.

“These clauses allow companies to avoid accountability by blocking group lawsuits and forcing people to go it alone or give up,” CFPB Director Richard Cordray said in a statement.

“Our ...

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