Feds want rules to prevent forced arbitration

Posted at 6:55 PM, May 24, 2016
and last updated 2016-05-24 21:55:43-04

For years, there's a been a tug of war between corporate America and consumers right to sue them. Now, you get to join the fight.

Class action lawsuits are one of the few ways consumers can actually fight companies and win. But from bank accounts to credit cards, more contracts are asking you to sign that right away. It's called a mandatory arbitration clause and it's buried deep in the fine print.

Instead of joining a class action, you agree to use secret arbitration to settle your dispute-- or do without the product. Most of us just take it.  

The Consumer Financial Protection Bureau (CFPB) says it's unfair.

Now, the agency is proposing new rules to prevent financial institutions from forcing it on you.

According to the CFPB, the rules would prevent companies from blocking "consumer class actions in court."  

They would also give incentives to businesses that follow the law and would require that companies turn over their arbitration case files to monitor for fairness.

The feds want to know what you think and are accepting public comment for at least the next three months.

Find out how to contact the CFPB here.

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