by Jeff Sovern Some congressional Republicans have said that the CFPB was asleep at the switch when it came to the Wells Fargo unauthorized account scandal, and that it just piggy-backed on the LA City Attorney, which was the first governmental office to bring a case against Wells for the accounts. But now the LA […]
Category Archives: Arbitration
Here, in the Consumer Finance Monitor. Alan also notes that the rule can be blocked by congressional invocation of the Congressional Review Act, litigation, or, if Cordray does indeed step down, by a new Trump-appointed director.
Here. It's another excellent column. Excerpt: Let’s say your elderly parent was neglected or abused in a nursing home. In the past, your only recourse might have been arbitration, rather than going to court. But thanks to a rule put in place last fall by the Centers for Medicare and Medicaid Services, nursing homes that receive federal funding — […]
Here. Excerpt: On June 7, a Utah judge will decide whether more than 50 consumers defrauded by banking giant Wells Fargo in its fake account scandal will be forced to pursue claims one by one in a secret arbitration system. Even as the bank’s PR machine loudly trumpets a focus on restoring consumer trust, Wells […]
Here. Excerpt on the CFPB's proposed arbitration reg: [Ballard Spahr's] Alan S. Kaplinsky told Bloomberg BNA that “it would be bordering on reckless” for CFPB Director Richard Cordray to finalize the rule because of the risk it will be overturned under the [Congressional Review Act].* * * Congressional Republicans will be in lock step against […]
Here. Excerpt: It’s unlikely that anyone actually believes that consumers understand arbitration clauses and take them into account when making buying choices. These arguments aren’t meant to be taken seriously. They are air cover for banking executives who like taking advantage of customers and politicians who want to do favors for the financial lobby. That’s the […]
Here. Excerpt: Wells Fargo’s opening of millions of phony accounts using the names of its customers was perhaps the most significant bank scandal to come to light since the financial crisis. But Hensarling’s Financial Choice Act, which passed the House Financial Services Committee, would have weakened federal regulators’ ability to publicize the scandal and punish […]
Here. The story reports that AT&T has nearly 150 million customers and that the eighteen claims were filed in the last two years. UPDATE: See comment by Gregory Gauthier below.
by Jeff Sovern It's for an arbitration symposium at Rutgers and is available for download here. I would love to hear comments! Here's the abstract: In September 2016, regulators charged Wells Fargo with opening millions of unauthorized accounts on behalf of its customers. When some of those customers filed class actions against Wells, the bank initially […]
by Jeff Sovern So CNNMoney reports here. The Committee will hold a hearing tomorrow; the witness list appears here. Seems pretty rushed for a 600-page bill that would make major changes in financial regulation, including changing the structure of the CFPB, eliminating its power to prohibit unfair, deceptive, and abusive practices, abrogating its power to […]