CFPB Rule Blocks Class Action Bans In Arbitration Clauses

By Evan Weinberger (July 10, 2017, 2:18 PM EDT) -- The Consumer Financial Protection Bureau on Monday issued a final rule banning companies from using arbitration clauses to bar consumers from filing class action lawsuits, setting up a fight with banks, credit card and other companies, and potentially the Trump administration.

Consumer Financial Protection Bureau Director Richard Cordray, seen here in a March 2015 file photo, on Monday said arbitration clauses that prohibit class actions "allow companies to avoid accountability." (AP) The CFPB said that mandatory arbitration clauses with class action litigation bans stop consumers from recovering in disputes over small fines and other charges with credit card companies and other lenders....

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