Consumer agency moves to assert bank customers' right to sue

The Consumer Financial Protection Bureau yesterday unveiled a proposed rule that would restore customers’ rights to sue banks.
 
The regulation, which applies to credit cards, bank accounts and consumer loans, would prevent lenders from forcing borrowers to sign mandatory arbitration clauses that bar class action law suits, according to The New York Times.
 
For cases that continued in arbitration after class-action suits were blocked, a study by the Times found judgments in favor of businesses won out over customers; between 2010 and 2011, businesses won $2.8 million in relief – mostly for debt – and consumers received less than $400,000.
 
The CFPB’s rule does not require the approval of Congress, and will undergo a 90-day public comment period before being finalized.

Read more from The New York Times.