The measure, which is scheduled for a vote at the company’s annual meeting next week, would block investors harmed by securities fraud or other corporate legal violations from bringing their claims as a class in a court of law, before a judge and jury. This would effectively end most shareholders’ ability to recover their losses in such cases, as they cannot affordably be brought individually in arbitration by any but the very largest institutional investors.
Letter to Congress: AFR Letter in Support of HR 1423, the Forced Arbitration Injustice Repeal Act (FAIR Act)
On September 9, 2019, AFR submitted a letter of support for HR 1643, the Forced Arbitration Injustice Repeal (FAIR) Act to the House Judiciary Committee.
Joint Letter: Coalition Letter in support of the Green amendment to the Consumers First Act restoring the CFPB arbitration rule
As part of the Fair Arbitration Now (FAN) coalition, AFR sent a letter in support of Rep. Green’s amendment to the Consumers First Act, which would restore the Consumer Financial Protection Bureau’s arbitration rule that was repeated by a Congressional Review Act resolution in 2017.
Americans for Financial Reform is stepping up its campaign in support of the consumer’s right to a day in court. A significant five-figure digital campaign targeting Maine, Alaska, Louisiana and Arizona will tell the stories of Hudson and Byrd, who were scammed by Wells Fargo – and left with no means of pursuing justice.
Americans for Financial Reform and Public Citizen are defending limits on forced arbitration from congressional attack with a delivery all 100 U.S. Senate offices: a mock “Get-Out-of-Jail-Free” card for the banks inspired by the board game Monopoly. An activist dressed as the billionaire Monopoly Man led the delivery.
This rush toward a vote in the Senate is a cynical attempt to roll back an important consumer protection before anyone gets straight answers from Equifax and Wells Fargo about the damage they’ve done to the financial lives of millions of Americans.
AFR in the News: Equifax breach may kill repeal of CFPB mandatory arbitration rule (American Banker)
“At least one Republican has already defected—and Crapo can only afford to lose one more… Amanda Werner, campaign manager at the consumer group Americans for Financial Reform and the liberal watchdog group Public Citizen, said ‘it is pretty appalling that Equifax would exploit consumers need for identify theft protection in the wake of this crisis they created in order to avoid accountability.’”
“A new U.S. rule aimed at restoring consumers’ ability to band together to sue financial companies has survived its first challenge, as a top banking regulator on Monday said he would not petition for it to be suspended… ‘The rule is a well thought-out response to the serious consumer harm of forced arbitration,’ said Brian Marshall, policy counsel for advocacy group Americans for Financial Reform.”
AFR Statement: House Vote on CFPB Forced Arbitration Rule a Victory for Big Banks and Predatory Lenders
House vote to roll back CFPB rule limiting forced arbitration aids big banks and predatory lenders while stopping ordinary Americans from getting their day in court.
AFR Statement: House Lawmakers Voting to Roll Back CFPB Forced Arbitration Rule Defy Public Sentiment
In a tough test for the public’s view of the rule, likely voters concluded the rule helps hold companies accountable, and rejected notions that it will encourages frivolous lawsuits.