CFPB Issues Rule Making It Easier for Consumers to Sue Banks
- Measure restricts use of arbitration to block class-actions
- Industry groups urge Republican Congress to overturn measure
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The U.S. Consumer Financial Protection Bureau is making it easier for customers to sue banks, a move sure to rile Wall Street and congressional Republicans.
Financial firms will be restricted in using mandatory arbitration to block class-action lawsuits, the CFPB said in a statement Monday. Clauses requiring arbitration to settle disputes are inserted routinely in contracts for credit cards, payday loans and other financial products.