Unless you operate a bank, or are a payday lender or another financial service provider that commits widespread wrongdoing, the Consumer Financial Protection Bureau’s new rule reining in the use of forced arbitration in financial contracts with class action bans won’t harm you.
The U.S. Chamber of Commerce would like for you to believe otherwise, but they’re backing big corporations.
The CFPB rule goes after bad actors, leaving others to go about their business. Rather than a new or onerous regulation, the rule establishes access to the justice system — giving wronged consumers their day in court.
For ordinary, law-abiding businesses, this rule helps level the playing field by taking away larger institutions’ “get out of jail free” cards. For our customers, it means an opportunity to hold wrongdoers accountable before a judge or jury that can view the sum of the misconduct and rule on behalf of all who were harmed.
People like me who want enforcement focused on bad actors should be fans of the CFPB rule. I hope Sen. Steve Daines and Rep. Greg Gianforte will work alongside Sen. Tester to protect the CFPB and Montanans.