Showing 2 posts from May 2016.

American Consumers Recover $225 Million As Court Approves Settlements Against Automotive Parts Cartel

Late Wednesday afternoon a judge in Michigan approved $225 million in settlements for American consumers and businesses who purchased automobiles that were affected by an international automotive parts price-fixing cartel.  The Hon. Marianne O. Battani of the United States District Court for the Eastern District of Michigan ordered that the settlements should be approved, compensating American consumers for overcharges they paid as a result of the conspiracy. Read More ›

CFPB Works to Give Consumers Their Day in Court with Proposed Rule Banning Mandatory Arbitration Clauses in Contracts with Financial Institutions

May 5, 2016 marks an important day for consumers in the United States, as it is the day that the Consumer Financial Protection Bureau (CPFB) issued proposed rules prohibiting banks and other financial institutions from inserting mandatory arbitration provisions in consumer contracts.  These arbitration clauses have grown in popularity as a tool by big-business to prevent consumers from banding together to pursue claims in court and also from pursuing claims as class actions.  Mandatory arbitration provisions give financial institutions a free pass to violate the law at the expense of consumers.  Banks know that they can make billions through sharp and illegal practices when they put a ban on class actions and court proceedings into their ‘take it or leave it’ contracts with consumers.  Big-business knows that few consumers would have the resources to pursue a claim in arbitration when only a few dollars, or few hundred dollars, or even a few thousand dollars are at stake.  This is especially true since class action bans prohibit consumers from joining together to remedy wrongs and is especially true when the mandatory arbitration clauses let the financial institutions pick which arbitrator to use, which rules apply, and which law applies. Read More ›