Mark Iandolo Aug. 17, 2016, 12:08pm


BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey has announced she is leading a coalition of 17 states and the District of Columbia in supporting the Consumer Financial Protection Bureau’s (CFPB) proposed rule to limit the use of mandatory pre-dispute arbitration clauses in contracts for financial products and services.

 

“For too long consumers have been forced to surrender basic legal rights simply to use every day financial products, like credit cards,” Healey said. “We support CFPB’s rule to allow all consumers to be heard and to pursue class action claims in court.”

 

The states believe the rule restores a consumer’s right, in cases against financial institutions, to assert claims in court in glass and group actions.

 

“Class action settlements provide monetary relief to consumers, act as a deterrent to the specific defendant as well as to the industry, and lead to the reform of otherwise unchecked unlawful, unfair or deceptive business practices,” the attorneys general said. “Restoring the right of consumers with common claims to pursue redress through class actions will provide a valuable check against corporate misconduct.”

 

The states participating in the letter include California, Delaware, the District of Columbia, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington.

Organizations in this Story

Consumer Financial Protection Bureau
1700 G St NW
Washington, DC 20552

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