Banks

Consumers Swindled by Wall Street and the Senate

When big banks swindle you, you won’t be able to join with other consumers to sue them. That’s because President Trump and his allies weighed in for Wall Street against working Americans.
Late at night on October 24, the Senate killed a rule that would have empowered consumers to file “class action” lawsuits against banks that bilk them out of their hard-earned money. Joining all but two Republicans to side with Wall Street, Vice President Pence broke a 50-50 tie vote. The Republican-controlled House had already rejected the rule, which had been proposed by the Consumer Financial Protection Bureau but never went into effect.
This means consumers can be compelled to settle their disputes on the banks’ home turf: out of court in arbitration procedures dominated by corporate lawyers. These “mandatory arbitration clauses” are hidden in small type and legal jargon in the lengthy contracts for checking accounts, credit cards and student loans.
Emboldened by this victory, the Trump administration is trying to make it more difficult for consumers to sue other corporations. For instance, Education Secretary Betsy DeVos is working to keep “mandatory arbitration” clauses in students’ contracts with the scandal-ridden for-profit colleges.
Hang on to your wallets.

Categories: Banks, Consumers