A rule proposed Thursday by the Consumer Financial Protection Bureau may ban mandatory arbitration clauses that prevent consumers from filing class-action lawsuits against their banks and credit card companies, NBC News reported.
The proposed rule would prohibit financial services companies from including mandatory arbitration clauses that forbid class-action lawsuits.
Supporters of the proposal say it will help keep companies honest, while opponents argue banks typically resolve disputes quickly and amicably.
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Arbitration clauses are generally embedded in the fine print of many financial institutions’ contracts, which many advocates say deny people the right to their day in court.