Pay attention! One of your elected officials voted to take away your right to access the court system.
Your House Representative, Scott Tipton (R-CO), voted today to block Americans from suing big banks that defraud or abuse them. Tipton voted to repeal the Consumer Financial Protection Bureau (CFPB) rule that keeps banks from forcing customers to give up their right to access the courts whenever they sign a contract to open a bank account. The banks seek to force customers into arbitration as the only way to deal with disputes. Arbitration typically results in fewer decisions in customers’ favor and in lower payouts. Rep. Tipton’s vote sided with the big banks.
Democrats say the CPFB rule is essential to protecting customers’ right to due process when they are abused by banks and credit card companies. We all know how often that happens. Since 2008, big banks globally have paid an aggregate of $321 billion in fines for abuses like market manipulation, money laundering and opening false accounts in their customers’ names without telling them.
Rep. Maxine Waters (D-CA) defending the CFPB’s rule:
“The Consumer Bureau’s forced arbitration rule ensures that consumers are not required to sign away their legal rights in order to open a bank account, obtain a credit card, finance a car, or obtain a private student loan… The rule is important for consumers and there is no sound public policy rationale for repealing it. It is outrageous that Republicans are trying to nullify the rule to the detriment of consumers. Republicans should think twice before taking away consumers’ rights to be heard in a court of law.”