The Bureau of Consumer Financial Protection recently issued a proposed rule that would restore consumers' rights to bring class-action lawsuits against financial firms, such as banks and credit card companies. The proposed rule would prevent enforcement of arbitration clauses requiring consumers to present their disputes to private arbitrators favorable to the financial firms.
Posts tagged "consumer law"
Citibank, the consumer division of Citigroup Inc., has been ordered by the United States Consumer Financial Protection Bureau (CFPB) to pay $700 million to their borrowers for illegal credit card practices. As many as 7 million of their clients have been affected by the financial service company's "deceptive marketing". According to international news agency Reuters, some of the illusive practices were misrepresenting costs and fees as well as charging for services they did not render. For the deceitful marking or retention actions, Citibank was ordered to provide $479 million for consumer relief for about 4.8 million accounts. However, only about $196 million was paid to 2.2% of consumers who purchased the option of monitored credit.