Last Thursday Senator Elizabeth Warren (D-MA) sent letters to the CEOs of sixteen of the top U.S. banks, asking them to go on record with their position on the Consumer Financial Protection Bureau’s (CFPB) arbitration rule.
The CFPB issued a rule on July 10 which prohibits banks and other creditors from including a clause in their agreements that prohibits the use of class action bans in certain financial contracts. The CFPB’s blog post – which also contains an animated video explaining the rule -- stated,
“Our new rule will restore the ability of groups of people to file or join group lawsuits. In some cases, not only will companies have to provide relief, they will also have to change their behavior moving forward.”
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