SPLC statement on new financial rule allowing consumers to file class action lawsuits against abusive lenders
The following statement, regarding the Consumer Financial Protection Bureau’s (CFPB) announcement this week of a new rule that will prohibit lenders from using arbitration agreements to block consumers from filing class action lawsuits, is by Sara Zampierin, senior staff attorney at the SPLC:
“Forcing consumers into arbitration leaves them with virtually no legal recourse to stand up to abusive lenders. It’s why we see these clauses in the fine print of most lending agreements, including payday and car title loans.
“The Consumer Financial Protection Bureau’s rule, which takes effect later this year, will help ensure consumers can defend their legal rights in court. Consumers will have the ability to fight and eliminate abusive practices in the financial industry through class action lawsuits. With this rule, the CFPB took a decisive step to protect vulnerable consumers from powerful financial institutions. It’s long overdue.”
