Rep. Scott Tipton (R-CO) targeted American consumers today when he voted to keep big bank customers from suing banks that defraud or abuse them. Tipton to repeal the Consumer Financial Protection Bureau (CFPB) rule that keeps banks from forcing customers to give up their right to access the courts when they open a bank account. The banks prefer to force customers into arbitration as the only way to deal with disputes. Arbitration typically results in fewer decisions in favor of customers and in lower payouts.
Democrats say the CPFB rule is essential to protecting customers’ right to due process when they are abused by banks and credit card companies.
Rep. Maxine Waters (D-CA) defending the CFPB’s rule:
“The Consumer Bureau’s forced arbitration rule ensures that consumers are not required to sign away their legal rights in order to open a bank account, obtain a credit card, finance a car, or obtain a private student loan… The rule is important for consumers and there is no sound public policy rationale for repealing it. It is outrageous that Republicans are trying to nullify the rule to the detriment of consumers. Republicans should think twice before taking away consumers’ rights to be heard in a court of law.”