July 11, 2017
Cotton Sides With Predatory Banks Against American Consumers
Statements From Public Citizen and Americans for Financial Reform
Note: Today, U.S. Sen. Tom Cotton (R-Ark.) proposed a Congressional Review Act resolution to overturn the U.S. Consumer Financial Protection Bureau’s (CFPB) arbitration rule, announced on Monday, which restores consumers’ ability to join together in class-action lawsuits against banks and other financial institutions.
“Every aggrieved consumer has an interest in retaining the right to join together with others to file class-action lawsuits against big banks and other financial institutions that cheat and scam them. Otherwise, they are effectively defenseless. The CFPB’s rule to end rip-off clauses – fine-print contract terms that force consumers to forfeit their right to file class-action lawsuits – would restore that right. In proposing congressional action to overturn the CFPB rule, Senator Cotton is making clear which side he’s on: the banks that want to predate; the payday lenders that want to fleece; the credit card companies that want to defraud; in short, the financial industry that spends hundreds of millions every year on lobbying and campaign contributions. And he’s making very clear who he’s standing against: American consumers who are routinely victimized by these very financial corporations.”
— Robert Weissman, president, Public Citizen
“This regulation restores a basic right – to your day in court – and ends a Wall Street bank and predatory lenders ‘get out of jail free card.’ Americans from across the political spectrum support the rule of law and are angry about Wall Street rigging the rules in its own favor. Most lawmakers are going to pay attention to that. Meanwhile, claims by industry lobbyists that they oppose the rule to protect consumers simply don’t pass the laugh test.”
— Lisa Donner, executive director, Americans for Financial Reform