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Members of the forums have discussed the Wells Fargo scandal, here is more press coverage of political fallout.
From the Washington Post:
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A week after Wells Fargo moved to block a lawsuit from dozens of customers affected by unauthorized accounts, lawmakers are stepping in to try to give those consumers their day in court.
Sen. Sherrod Brown (D-Ohio) and Rep. Brad Sherman (D-Calif.) introduced a bill Thursday that would give customers the ability to sue the bank over the sham accounts.
The bill comes roughly a week after Wells Fargo asked a federal judge to dismiss a lawsuit filed by dozens of customers over unauthorized accounts so that the issues could be resolved in a private mediation process known as arbitration.
Many of the Wells Fargo customers who had fraudulent accounts opened in their names are subject to terms of agreement that require disputes be resolved by arbitration and often prohibit consumers from participating in class action lawsuits. The clauses are regularly included in consumer agreements for checking accounts, credit cards and other consumer products.
In the case of the dozens of Wells Fargo customers, the arbitration clauses they agreed to for their legitimate accounts are being used to block the lawsuit over the fake accounts.
Former Wells Fargo chief executive John G. Stumpf defended arbitration during a congressional hearing in September after lawmakers — including Sherman and Brown — asked if the bank would make an exception for the customers affected by the fake accounts. Stumpf said those customers would not be allowed to sue, but called arbitration a “fair” way for them to have their concerns addressed.
Lawmakers and consumer groups slammed the bank’s decision to enforce the arbitration clauses. “We need to give customers back their ability to seek justice in court so they can be made whole again,” Brown said in a statement.
Wells Fargo declined to comment on the legislation. “Wells Fargo has been working very hard to remediate harm that may have been caused, including contacting affected customers, developing redress and reimbursement practices and tracking payments to refund all fees,” said Wells Fargo spokeswoman Jennifer Dunn.
The Consumer Financial Protection Bureau is working on rules that would prohibit companies from using arbitration clauses that ban customers from class action lawsuits. But the proposed rule could face a tough challenge next year under President-elect Donald Trump, who has said he wants to “dismantle” the Dodd-Frank Act that created the bureau.
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The CFPB is challenging a federal court ruling from October that found the structure of the agency is unconstitutional and that the agency’s director can be removed by the president at will. Republicans could also ramp up efforts to weaken the agency next year, when they gain control of both chambers of Congress.
Sen. Elizabeth Warren (D-Mass.) criticized the bank’s attempt to halt the lawsuit on Facebook this week and defended the CFPB’s efforts to limit arbitration clauses. “Wells Fargo made a big show of promising to treat their customers better, but now we can see just how meaningless that promise is,” she wrote.
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Linky: https://www.washingtonpost.com/news/...=.41ad26a3b141
From the Washington Post:
------------------------------
A week after Wells Fargo moved to block a lawsuit from dozens of customers affected by unauthorized accounts, lawmakers are stepping in to try to give those consumers their day in court.
Sen. Sherrod Brown (D-Ohio) and Rep. Brad Sherman (D-Calif.) introduced a bill Thursday that would give customers the ability to sue the bank over the sham accounts.
The bill comes roughly a week after Wells Fargo asked a federal judge to dismiss a lawsuit filed by dozens of customers over unauthorized accounts so that the issues could be resolved in a private mediation process known as arbitration.
Many of the Wells Fargo customers who had fraudulent accounts opened in their names are subject to terms of agreement that require disputes be resolved by arbitration and often prohibit consumers from participating in class action lawsuits. The clauses are regularly included in consumer agreements for checking accounts, credit cards and other consumer products.
In the case of the dozens of Wells Fargo customers, the arbitration clauses they agreed to for their legitimate accounts are being used to block the lawsuit over the fake accounts.
Former Wells Fargo chief executive John G. Stumpf defended arbitration during a congressional hearing in September after lawmakers — including Sherman and Brown — asked if the bank would make an exception for the customers affected by the fake accounts. Stumpf said those customers would not be allowed to sue, but called arbitration a “fair” way for them to have their concerns addressed.
Lawmakers and consumer groups slammed the bank’s decision to enforce the arbitration clauses. “We need to give customers back their ability to seek justice in court so they can be made whole again,” Brown said in a statement.
Wells Fargo declined to comment on the legislation. “Wells Fargo has been working very hard to remediate harm that may have been caused, including contacting affected customers, developing redress and reimbursement practices and tracking payments to refund all fees,” said Wells Fargo spokeswoman Jennifer Dunn.
The Consumer Financial Protection Bureau is working on rules that would prohibit companies from using arbitration clauses that ban customers from class action lawsuits. But the proposed rule could face a tough challenge next year under President-elect Donald Trump, who has said he wants to “dismantle” the Dodd-Frank Act that created the bureau.
Content from Ryder System, Inc.Supply chain's revolutionary road
Constant innovation is helping businesses of all sizes get goods to market sooner and more efficiently.
The CFPB is challenging a federal court ruling from October that found the structure of the agency is unconstitutional and that the agency’s director can be removed by the president at will. Republicans could also ramp up efforts to weaken the agency next year, when they gain control of both chambers of Congress.
Sen. Elizabeth Warren (D-Mass.) criticized the bank’s attempt to halt the lawsuit on Facebook this week and defended the CFPB’s efforts to limit arbitration clauses. “Wells Fargo made a big show of promising to treat their customers better, but now we can see just how meaningless that promise is,” she wrote.
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Linky: https://www.washingtonpost.com/news/...=.41ad26a3b141
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