When a business or financial institution can control everything about it's practices, including judicial hearings that is not abusive, that is corruption. The current practice of mandatory arbitration is to minimize the power of the consumer.
When the power of the consumer conscience is minimized it allows for more than control over financial settlements but also the very health of the consumer. Why not make a product as cheaply as possible putting a dangerous element in because it brings down the cost of the product? There is nothing stopping that practice. The government comes in after the damage is realized to end the practice and pick up the pieces.
I know it seems inconceivable today, but, in the recent past the federal government would prohibit dangerous products in the market. The FDA actually had power to prevent dangerous products from entering the market. Lawsuits were avoided. The effects of danger was eliminated.
The return to sane government policy is vital and it needs to be federal. What is stopping states such as Texas or Mississippi from allowing danger into citizen's lies while New York or Connecticut demands safe products in their state? Nothing and in that lies the idea companies will gravitate to states without regulations as a way of making more profit. Such potential causes economic strain on our most moral states while companies migrate and displace workers. These laws need to be consistent around the country.
These exploitative practices have to be upheld as corrupt IN OUR TRADE AGREEMENTS AS WELL!
The SPLC joined 286 advocacy groups (click here) today voicing support for the Consumer Financial Protection Bureau’s (CFPB) proposal to restrict the financial industry’s use of forced arbitration – a tactic employed by Wall Street banks and predatory lenders to prevent consumers from challenging illegal practices in court.
In a letter submitted on the final day of the proposed rule's public comment period, the groups lauded it as "a significant step forward in the ongoing fight to curb predatory practices in consumer financial products and services." The CFPB will consider the public's comment before issuing a final rule.
Banks and lenders bury arbitration clauses in the first print of contracts to ensure that all customer disputes are decided by a private firm of the financial company's choice, rather than an impartial judge or jury. Most financial arbitration clauses are prevent consumers from joining class action lawsuits to challenge systemic abuses as a group.
"Forced arbitration leaves consumers virtually no legal recourse to stand up to abusive lenders," said Sara Amzpierin, SPLC senior staff attorney. "It's why we see these clauses in most lending agreements, including payday and car title loans. The CFPB rule will help ensure consumers can defend their legal rights. It gives them access to the courts and ability to bring class action suits that can help eliminate the financial industry's abusive practices....
When the power of the consumer conscience is minimized it allows for more than control over financial settlements but also the very health of the consumer. Why not make a product as cheaply as possible putting a dangerous element in because it brings down the cost of the product? There is nothing stopping that practice. The government comes in after the damage is realized to end the practice and pick up the pieces.
I know it seems inconceivable today, but, in the recent past the federal government would prohibit dangerous products in the market. The FDA actually had power to prevent dangerous products from entering the market. Lawsuits were avoided. The effects of danger was eliminated.
The return to sane government policy is vital and it needs to be federal. What is stopping states such as Texas or Mississippi from allowing danger into citizen's lies while New York or Connecticut demands safe products in their state? Nothing and in that lies the idea companies will gravitate to states without regulations as a way of making more profit. Such potential causes economic strain on our most moral states while companies migrate and displace workers. These laws need to be consistent around the country.
These exploitative practices have to be upheld as corrupt IN OUR TRADE AGREEMENTS AS WELL!
The SPLC joined 286 advocacy groups (click here) today voicing support for the Consumer Financial Protection Bureau’s (CFPB) proposal to restrict the financial industry’s use of forced arbitration – a tactic employed by Wall Street banks and predatory lenders to prevent consumers from challenging illegal practices in court.
In a letter submitted on the final day of the proposed rule's public comment period, the groups lauded it as "a significant step forward in the ongoing fight to curb predatory practices in consumer financial products and services." The CFPB will consider the public's comment before issuing a final rule.
Banks and lenders bury arbitration clauses in the first print of contracts to ensure that all customer disputes are decided by a private firm of the financial company's choice, rather than an impartial judge or jury. Most financial arbitration clauses are prevent consumers from joining class action lawsuits to challenge systemic abuses as a group.
"Forced arbitration leaves consumers virtually no legal recourse to stand up to abusive lenders," said Sara Amzpierin, SPLC senior staff attorney. "It's why we see these clauses in most lending agreements, including payday and car title loans. The CFPB rule will help ensure consumers can defend their legal rights. It gives them access to the courts and ability to bring class action suits that can help eliminate the financial industry's abusive practices....
