Proposed Rule Could Allow Class-Action Lawsuits Against Banks | NBC New York

Proposed Rule Could Allow Class-Action Lawsuits Against Banks

The proposed rule would prohibit companies from including mandatory arbitration clauses in their contracts

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    A rule proposed Thursday by the Consumer Financial Protection Bureau may ban mandatory arbitration clauses that prevent consumers from filing class-action lawsuits against their banks and credit card companies, NBC News reported. 

    The proposed rule would prohibit financial services companies from including mandatory arbitration clauses that forbid class-action lawsuits. 

    Supporters of the proposal say it will help keep companies honest, while opponents argue banks typically resolve disputes quickly and amicably. 

    Arbitration clauses are generally embedded in the fine print of many financial institutions’ contracts, which many advocates say deny people the right to their day in court.