Washington’s crusade against consumer protections continued last week when the U.S. Senate voted to kill a rule that would have allowed consumers to file class-action lawsuits against financial institutions. The reinstatement of the status quo means that big banks can force its customers into private arbitration if a dispute arises. President Donald Trump is expected to sign off on the elimination of the Consumer Financial Protection Bureau rule.
“It’s really not a boon for consumers,” Michael said, contradicting the White House’s position on the rule change. “In fact it’s anti-consumer.”
Michael explained that eliminating the rule not only severely limits the options of average consumers, but it also puts all the power in the hands of large corporations. While this specific rule only applies to financial institutions, it has wide-ranging implications since most consumer agreements include language about forced arbitration.
“It’s in a lot of the agreements,” Burg said. “If you looked in your iPhone, it’s a lot of language that you never would even read or even understand in which they prohibit you from filing an action against them in court and prohibit you from filing and being part of a class action.”
You can see the entire interview here.