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Sen. Warren quizzes bank CEOs on arbitration rule

Joe Mont | August 16, 2017

Senator Elizabeth Warren (D-Mass.) has authored letters to the CEOs of 16 large financial institutions asking whether they support or oppose the Consumer Financial Protection Bureau's recent rule banning forced arbitration.

The letters also request data on the firms' use of arbitration clauses in consumer agreements and the outcomes of arbitration proceedings. 

The CFPB rule restores consumers’ right to file or join group lawsuits. Companies can still include arbitration clauses in their contracts, but may not use arbitration clauses to stop consumers from being part of a group action. It includes specific language that companies will need to use if they include an arbitration clause in a new contract.

The rule applies to the major markets for consumer financial products and...

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