After years of discussions and debates, the Consumer Financial Protection Bureau (CFPB) is unveiling a major new rule that will prohibit lenders from including forced arbitration clauses with class action bans in their lending contracts.
The U.S. Court of Appeals for the Seventh Circuit announced that TransUnion – one of the three big credit reporting agencies and one of the most powerful corporations in America – went too far in trying to slip an arbitration clause past consumers in a way they wouldn’t notice.
The U.S. Chamber of Commerce, one of the country’s largest corporate lobbying organizations, wants American consumers to believe that it has their best interests at heart. This is a myth.
In a recent blog post, the Chamber argues against a proposed rule being considered by the Consumer Financial Protection Bureau. The rule would prohibit contracts for consumer financial products from combining arbitration clauses that prevent consumers from going to court with terms that ban consumers from bringing or being a part of a class action. The Chamber argues that when consumers have been cheated by banks or debt collectors, it’s in the consumers’ best interest to bring those companies to individual arbitration, rather than banding together in a class action. This position, however, is completely disingenuous.