Equifax Breach Complicates Banks’ Efforts to Fend off Lawsuits

By Elizabeth Dexheimer, Bloomberg News

JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. are defending their practice of requiring customers to resolve disputes through arbitration, just as Equifax Inc.’s massive data breach complicates efforts to fend off rules that would make it much easier for consumers to sue banks.

Last month, U.S. Senator Elizabeth Warren, one of Wall Street’s loudest critics, sent letters to 16 of the biggest U.S. lenders demanding information on how they use mandatory arbitration. Their responses, released on Tuesday, show many banks argue it benefits consumers by frequently leading to bigger payouts and ...