In recent years, there have been numerous efforts from huge corporations, financial institutions, Wall Street lawyers, political lobbyists, and in-pocket Congress members to strip average Americans of their right to take serious matters to the courtroom for litigation. Following an extensive, multiyear review of the situation, the Consumer Financial Protection Bureau (CFPB) had to create a rule to restore a series of lost rights, specifically the right for plaintiffs to band together against banks in class actions. This rule also re-allowed people to hold lenders legally accountable for any unlawful practices that gouge consumers of finances and destabilizes the American economy as a whole through misleading contracts. As an example of what can happen when those rights are not in place, look no further than recent catastrophes like the Equifax data breach and Wells Fargo scandal involving thousands upon thousands of fake accounts being created in peoples’ names.
Despite all the immense benefits the CFPB has restored and tried to protect, a large group of Congress members are once again trying to wipe those rights clean! If we want to hold onto our necessary right to litigate and join forces against big banks and corporations, we must all do our part and use our voices. Tell your Senators to support the CFPB arbitration rule and to reject S.J.Res.47, the resolution written to remove the CFPB’s arbitration.
The U.S. Capitol Switchboard can be reached by dialing (202) 224-3121. Use it now to call your Senator and let them know how you feel about this entire situation!
Forced Arbitration Favors Corporations & Banks
If S.J. Res. 47 is allowed to pass by Congress, the only way people can hold banks and lenders accountable for intentional wrong doing will most likely be forced arbitration. Commonly called “rip-off clauses,” forced arbitration clauses are placed into contracts, usually in the middle of another unrelated section to “hide” it, and prevent an individual or class from suing the contract holder in court. If a problem arises that requires restitution and correction, the bank or lender can require the consumer to enter private arbitration behind closed doors and reach an “agreement.”
However, studies have shown that forced arbitration is in no way fair and balanced. Consumers lose an inordinate amount of forced arbitration cases and receive marginal amounts in compensation in the few cases that are won. Perhaps worst of all, forced arbitration leaves no chance to appeal the result. Once it is “settled,” it is legally over.
The CFPB rule allows consumers to gain strength and influence by banding together in classes and taking big corporations and banks to court for acts of financial misconduct. Other forms of professional recklessness or illegalities that jeopardize consumer wealth and the American economy, like Wells Fargo and Equifax scandals, can also be brought to light in court – but only if the CFPB rule can stand. The CFPB’s proposal is essential in ensuring that American constituents, such as military service members currently in an active tour of duty, can stand up for themselves and their families when mistreated by financial fraud.
Once again, the best and simplest way you can take action right now to uphold your rights as an American consumer is contacting your Senators by dialing (202) 224-3121.
Consider using this helpful template when talking to or leaving a message for your Senator:
My name is ____. I live in [STATE], and I urge you, Senator _____to support the CFPB arbitration rule and oppose any Congressional Review Act resolution that would repeal it, including S.J. Resolution 47. Forced arbitration clauses and class action bans block Americans’ day in court. The CFPB rule restores our constitutional right to band together, as well as the right of service members to enforce laws that protect their financial wellbeing when they are on active duty. I urge you, Senator ____ to support the rule and vote NO on the CRA.
For more information about how you can help challenge the efforts of Wall Street lobbyists that want nothing more than to repeal the CFPB rule, you can contact The Law Offices of Jason E. Taylor, P.C. and talk to our Hickory personal injury attorneys about what is going on today. From all of us at our law firm, thank you for joining the fight.