Consumer Financial Protection Bureau Introduces Rule to Help Consumers File Class Action Lawsuits
Class action lawsuits are an important way consumers can protect themselves from big businesses and large corporations taking advantage of them. The amount awarded to each individual taking part in a class action lawsuit usually isn’t that much. However, it forces corporations to think before they act and acts as a strong deterrent against unfair business practices.
Without class action lawsuits, the average consumer would not have the resources to go against a large corporation with a huge budget and an army of lawyers. The corporation would always have the upper hand.
In early July, the Consumer Financial Protection Bureau (CFPB) passed a rule that would prevent financial firms from including clauses in their contracts that would force consumers to waive their rights to join in a class action lawsuit should anything go wrong.
Financial firms, such as banks, would often hide language in their contracts that would prohibit consumers from banding together with others in a class action lawsuit. Instead, consumers would be forced to arbitrate directly with the bank.
As mentioned, this would place consumers in a tight spot, as large firms would always have the upper hand. Consumers would not be able to get the compensation they deserve. The rule prevented firms from including this condition in their contracts.
Unfortunately, in late July, the House introduced a bill that would strike down this rule. The bill passed; Democrats opposed the bill, saying that it would harm consumers by preventing them from filing class action lawsuits against firms who use unfair business practices. One Republican voted against the bill as well. The bill now must pass the Senate and go before the President.
For help with class action lawsuits against any big business that wronged you, contact us today!