Wells Fargo, PNC Draw Protest of Arbitration Clauses
Read alone, a recent report from the CFPB might suggest that arbitration clauses in banking contracts could disadvantage consumers, but it was only a preliminary look that failed to paint a complete picture of arbitration's costs and benefits.May 6
Banking groups fear the Consumer Financial Protection Bureau is already gearing up to write tough new rules restricting the use of arbitration clauses despite promises by agency officials that a study on the issue was only "preliminary" and not designed to pass judgment.December 12
Consumer advocates pressed the Consumer Financial Protection Bureau on Wednesday to crack down harder on credit card issuers despite recent regulations that largely curtailed hidden fees and predatory practices.October 2
Consumer activists are targeting the use of arbitration clauses at Wells Fargo and PNC Financial Services Group.
The activists hand-delivered protest petitions Thursday that, they said, contained 67,000 signatures. Arbitration clauses put consumers at an unfair disadvantage in disputes with their banks, the groups said. The Consumer Financial Protection Bureau has an ongoing study into the effects of arbitration clauses on consumers and released initial data in December of last year. The study was mandated by the Dodd-Frank Act; if the bureau determines that arbitration clauses harm the public, it has the authority to end them going forward.
"Forced arbitration is a secret weapon America's biggest banks are using to deny basic rights to citizens," Alexis Goldstein, communications director of Other98.com, said in a news release.
Consumer Action, Americans for Financial Reform, Public Citizen, the Other 98%, Alliance for Justice, the American Association for Justice and the National Association of Consumer Advocates helped organize the petitions.