The Consumer Financial Protection Bureau (CFPB) [official website] announced [press release] a new rule Monday, banning mandatory arbitration clauses in consumer agreements. The CFPB explained that mandatory arbitration agreements can prevent class action lawsuits and perpetuate harmful practices. The new rule will enforce the consumer’s right to take part in group lawsuits.
Navient, a company that derived from Sallie Mae, has more than 12 million customers and services more than $300 billion of government and private student loans. In January, a lawsuit was filed against the student loan lender where the Consumer Financial Protection Bureau (CFPB) alleged that Navient “systematically and illegally failed borrowers at every stage of …
On Wednesday, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Navient, the largest student loan servicer in the country. If you have a student loan, there is a good chance that it may be serviced by Navient. Navient, which spun off from Sallie Mae, has more than 12 million customers and services more than $300 billion of government and private student loans. Here is what you need to know and the action that you can take …
The leaders of a Congressional subcommittee are urging the Consumer Financial Protection Bureau to include a safe harbor provision in its final set of rules prohibiting arbitration clauses that prevent class action lawsuits. U.S. Reps. Randy Neugebauer, R-Texas, who chairs the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer …
CFPB Proposal Would Effectively Eliminate Most Pre-Dispute Consumer Arbitrations To no one’s surprise, the Consumer Financial Protection Bureau (CFPB) proposed rules on May 5, 2016 that will effectively, if promulgated as expected, eliminate most pre-dispute arbitrations arising out of the sale of consumer financial products. As detailed below, the proposed rules would, among other things: (1) …
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 …
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 …
On Thursday, the Consumer Financial Protection Bureau (CFPB) proposed a new rule that would ban the use of mandatory arbitration clauses, which many banks and credit card companies insert into contracts to prohibit customers from filing class-action lawsuits against them. In the event a customer sues a company outside of small-claims court, the business can enforce these clauses to block a …
Much of the criticism leveled against the Consumer Financial Protection Bureau (CFPB) in the Bureau’s brief five-year history has been centered on claims that the CFPB is too tough on businesses it deems to have engaged in predatory financial activity. This week, however, a large number of prominent national organizations called for the CFPB to get even tougher. A coalition consisting of more …