Cybersecurity
Wells Fargo’s Home State Aims to Curb Use of Closed-Door Arbitration
- California Governor Jerry Brown signs arbitration measure
- Bill was inspired by outrage over bank’s fake accounts scandal
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Wells Fargo & Co.’s home state of California passed a law aimed at curtailing the bank’s use of closed-door arbitration to shroud complaints from aggrieved customers affected by its scandals.
Governor Jerry Brown signed a measure inspired by the San Francisco-based lender’s fake-accounts scandal. It prohibits financial firms from forcing customers out of court and into arbitration to settle disputes when employees used clients’ information to commit fraud.