Millions of Americans live with the possibility that, at any moment, their wages or the cash in their bank accounts could be seized over an old debt. It’s an easily ignored part of America’s financial system, in part due to a common attitude that people who don’t pay their debts deserve what’s coming to them. A couple of years ago, we set out to find out more about the growing use of the courts …
A new proposal by the nation’s chief consumer watchdog could help government regulators and prosecutors stop big banks’ dubious practices more quickly. The Consumer Financial Protection Bureau on Thursday suggested a ban on clauses tucked into contracts for credit cards, student loans and other financial products that prohibit consumers from joining together to sue financial companies for …
A southwest Ohio village’s attorney said he will ask the state’s high court to overturn an appeal court’s approval of class-action status for motorists who paid nearly $2 million in fines before a judge ordered New Miami to turn off its traffic cameras. New Miami’s attorney, Felix Gora, said he will ask the state Supreme Court later this week to reject the approval of class-action status for …
The High Court in London, UK, is to consider a class action lawsuit that alleges members of a worldwide timeshare exchange club suffered detriment over improper âskimming offâ of premium timeshare properties. The case, set for Monday 9 May, concerns premium timeshare properties from the exchange pool by the exchange club …
New rules proposed on Thursday by a U.S. consumer watchdog would block credit card companies, banks and other firms from forcing customers to waive their rights to join class action lawsuits and settle disputes only through arbitration. The Consumer Financial Protection Bureau said financial firms should be barred from using fine print in contracts that mandates arbitration instead …
A Delaware judge has dismissed a lawsuit filed against three major U.S. clothing retailers after the 2013 collapse of a garment factory in Bangladesh that killed more than 1,100 people. An injured worker and a man whose wife died in the collapse lodged the complaint last year against Wal-Mart Stores, J.C. Penney and the Children’s Place. The lawsuit claimed the companies failed to ensure safe …
If government regulators get their way, it’s going to become a lot easier to sue your bank. By and large, U.S. bank customers have signed away their right to sue their bank in court, often without being aware of it. Buried in the fine print of credit card agreements, bank accounts and insurance policies are what are known as binding, or mandatory, arbitration …
In a major setback for banks, credit unions, credit card companies and many other financial firms, the Consumer Financial Protection Bureau on Thursday issued a proposal that would ban the use of arbitration clauses that prevent consumers from bringing class-action lawsuits. The 377-page proposal, released to the media a day early, would still allow companies to offer arbitration as a way to …
Have you ever used a credit card? Or signed up for a phone plan? Opened a bank account? Chances are, you also agreed to never sue the company that offered you the service. A massive number of everyday services require us to agree with some kind of written contract. From more significant decisions like taking a loan, to the most trivial, like updating iTunes. The government is now …
As we reported last year, in October 2015 the Consumer Financial Protection Bureau published an outline of proposals that would limit the use of arbitration provisions in contracts for consumer financial products. On May 5, 2016, the CFPB followed up by releasing a proposed rule that would ban consumer financial services providers such as banks, credit card issuers, and small-dollar lenders …