Editorial Board
How to Make Lawsuits Work for Consumers
In their fight over mandatory arbitration, Congress and the Consumer Financial Protection Bureau are both missing the point.
Watch what you're signing away.
Photographer: Sean Gallup/Getty Images,
Congressional Republicans and the Consumer Financial Protection Bureau are clashing over a question that has implications far beyond the world of finance: How far can companies go to protect themselves from customer lawsuits? Neither side has got the answer quite right.
If you’ve ever signed up for a credit card, you’ve most likely skipped through the boilerplate contracts at the center of the controversy. They’re mostly concerned with commercial terms such as interest rates and fees. These standardized conditions facilitate trade and save everyone time and money.