Aug 24, 2016

Mandatory Binding Arbitration

The Montgomery-Based Southern Poverty Law Center and a few hundreds other consumer type groups have joined forces to end it.

The SPLC says:

“Forced arbitration leaves consumers with virtually no legal recourse to stand up to abusive lenders,” said Sara Zampierin, 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 the ability to bring class action suits that can help eliminate the financial industry’s abusive practices.”

     If you have made almost any large purchase of goods or services, chances are you have signed one of these agreements. The new federal Consumer Financial Protection Bureau wants to strictly restrict their use.

     Rep. Terri Sewell (D-Selma) was the only Alabama members of The U.S. House signing a letter supporting the proposed regulations. Neither of Alabama's U.S. Senators signed the Senate version.
   By the way, banks are towards the top of the list in imposing mandatory binding arbitration, according to one report.

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