Senate Repeals Rule Allowing Consumers to Sue Banks

Nov 02,2017

On Tuesday, the Senate voted to repeal a Consumer Financial Protection Bureau (CFPB) rule allowing consumers to sue banks. President Trump signed the repeal Wednesday. The move is just the latest in a series of attacks against consumer protections.

The CFPB created the rule to make it possible for consumers to pursue class action lawsuits against their banks and credit card companies. It was part of an effort to ban the mandatory arbitration clauses consumers often enter into when doing business with banks.

Forced Arbitration Hurts Consumer Rights

Senators in favor of repealing the rule say class-action lawsuits benefit lawyers more than consumers, whereas arbitration payouts generally yield better payouts. However, those against the repeal argue that consumers usually do not have the time and means to pursue an arbitration claim, and they typically give up before receiving said payout. Banks understand this, so they know a forced arbitration clause essentially lets them off the hook if they take advantage of their customers.

“Class-action lawsuits are a powerful tool for consumers against institutions that have wronged them. Forcing consumers to settle their disputes with powerful corporations via arbitration takes away their voice and allows banks to shirk accountability,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, and Yucca Valley and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.