Bank And Financial Institutions Banned From Including Mandatory Arbitration Clauses In Auto Loans

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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MDarringer - 7/11/2017 8:51:22 AM

0 Boost

This is anti-consumerist. With arbitration you aren't blocked from suing, you just agree to try to work it out first. With this new approach, only lawyers get money. Because of all the litigation that is being ushered in, borrowing money will become a lot more expensive for people. I may go for my juris doctor at this rate.

TomM - 7/11/2017 3:23:35 PM

+1 Boost

Except that the scum sucking Trial Lawyers are overwhelmingly republicans - and this is a policy from a republican administration -

MDarringer - 7/11/2017 3:57:14 PM

+1 Boost

Actually, attorneys tend to be Democrat.