The Consumer Financial Protection Bureau on Monday banned banks and other financial services companies from including mandatory arbitration clauses in contracts to prevent consumers pursuing claims of wrongdoing from joining class-action lawsuits. The rule could have a wide-ranging impact on major financial services providers, including automaker's captive finance units and other auto lenders.
The CFPB said the sweeping rule "applies to the major markets for consumer financial products and services overseen by the Bureau, including those that lend money, store money, and move or exchange money."
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