by Jeff Sovern My latest, here. Excerpt: The Wells Fargo case shows the difference between arbitration and class actions: the difference between getting nothing and getting something. * * * Critics of the rule claim that class actions are just giveaways to lawyers. It’s true that not all class actions work as well as the Wells […]
Category Archives: Arbitration
In the SF Chronicle. The indefatigable Ted teaches consumer law at Berkeley. Here is his conclusion: So why did Director Cordray [issue the Arbitration Rule despite opposition from the powerful financial lobby]? Maybe he believes that the American people know a sharp practice when they see one, and that they won’t stand for the undoing […]
by Jeff Sovern Yesterday, according to The Hill, Senator Tom Cotton of Arkansas, announced that he would seek to block the CFPB's Arbitration Rule using the Congressional Review Act, saying: “The Bureau’s new rule on arbitration clauses ignores the consumer benefits of arbitration and treats Arkansans like helpless children, incapable of making business decisions in […]
by Jeff Sovern Here's what David Lazurus says in his LA Times column, Banks and credit card companies can't try to stop you from joining a class action lawsuit — for now: Consumer advocates — who for months have been gearing up for this fight — tell me they have little doubt the House will […]
by Jeff Sovern House Financial Services Chair Jeb Hensarling has already called for Congress to invalidate the CFPB arbitration rule by using the Congressional Review Act while the US Chamber of Commerce calls it a "Prime Example of [an] Agency Gone Rogue." Sigh.
by Jeff Sovern Different, that is, from arbitrations over the unauthorized accounts, about which we have reported (Wells has agreed to set aside its arbitration clause in the unauthorized account dispute and settle the claims in a class action; court approval is pending but seems likely). Ira's piece, titled Courts, Regulators Must Stop Wells Fargo’s […]
by Jeff Sovern We posted yesterday about the House Appropriations Bill. I haven't studied the bill, but on a quick look, it contains a number of objectionable provisions from the Financial Choice Act (already passed by the House), including repeal of the CFPB's power to regulate arbitration and payday lenders and to block conduct on […]
Here. From the Executive Summary: 32 firms appear to be offering consumer arbitration services in California. Of those, only 11 firms follow the substantive requirements of §1281.96(a) , and of those, only three firms can be said to evidence robust and full compliance with the statutory regime, including §1281.96(b)’s formal requirements as to format, timing […]
by Jeff Sovern Reuters reports that the bill has passed an Assembly committee, and is expected to pass the Assembly in August (the state Senate has already passed it). Here's the part I don't understand: if California enacts the law, how can it avoid being preempted under the Federal Arbitration Act, as SCOTUS has interpreted […]