“The last time you signed a contract for a cell phone plan, a bank account, or a credit card, you probably signed away your right to go to court if that company cheated you. That’s because most contracts for financial products contain forced arbitration clauses buried deep in the fine print. These clauses prohibit consumers from protecting themselves in court, and they make it a lot easier for financial institutions to get away with cheating their customers.” —Sen. Elizabeth Warren, October 2015.
In a move The New York Times calls “the biggest that the agency has made since its inception in 2010,” the Consumer Financial Protection Bureau Thursday proposed a rule that would bar mandatory arbitration clauses in contracts with financial firms. Since it requires no congressional approval, the rule quite likely will go into effect after a 90-day public comment period in which opposition from business groups will no doubt be extensive, loud and bullshitty. (If you’d like to comment, you can choose a method here.) Foes of the rule, which could cost firms billions, include the U.S. Chamber of Commerce:
Continue reading: You soon may be able to sue your bank. Watch Wall Street heads explode