A recent article from Attorney Paul Samakow on Communities Digital News reports on Thursday, May 5, the Consumer Financial Protection Bureau (CFPB) proposed new rules that “would allow consumers to file class action lawsuits against financial companies.” Without this new rule, “consumers with disputes against financial companies” will still be “required to sign arbitration agreements with those organizations that bar them from participating in class action lawsuits.”
The new rule, according to the agency “will also require companies to report arbitration results to the agency, making it easier for regulators and consumer groups to spot bias and other trends that would be harmful to consumers.” What happens next? The proposed rule will go through a 90-day public comment period, in which afterwards a final rule will be drafted and reviewed by the Office of Management and Budget. Once approved, we are hopeful that this ruling will “finally level the playing field between consumers and financial companies.”
Read the full article, “Proposed CFPB rule: A partial end to forced arbitration.”
Photo Credit: Ioulia Bolchakova