New Wells Fargo Revelation Underscores Importance of CFPB’s Arbitration Rule
WASHINGTON, D.C. – In response to today’s news that Wells Fargo employees created an estimated 1.4 million more fake accounts than originally reported – now totaling a staggering 3.5 million fake accounts in all – Allied Progress executive director Karl Frisch released the following statement:
“Congress now has 1.4 million more reasons to protect the Consumer Financial Protection Bureau’s arbitration rule. Today’s stunning revelation from Wells Fargo underscores why this new rule is vitally important in the fight to protect banking customers from fraud and deceit. Eliminating the arbitration rule, as some Republicans in Congress are calling for, would allow big banks and other financial institutions to continue these and other illegal and damaging practices unchecked. Customers affected by scandals like this should be allowed to exercise their constitutional right to have their day in court, rather than being forced into a secret arbitration tribunal where big banks call the shots and individuals hardly stand a chance. It is time to bring the scandalous and widespread illegal behavior by Wells Fargo and others like it into the open so that consumers know they aren’t the only ones being screwed over. Repealing this rule would allow these financial predators to sweep problems like this under the rug so they can continue to lie, cheat, and steal from their customers with near impunity.”
The Consumer Financial Protection Bureau (CFPB) announced its arbitration rule on July 10. The rule was the result of an extensive study the CFPB conducted on harmful forced arbitration practices in the financial industry.
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