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We’ve issued a new rule on arbitration to help groups of people take companies to court

On Nov. 1, 2017, the President signed a joint resolution passed by Congress disapproving the Arbitration Agreements Rule under the Congressional Review Act (CRA). Pursuant to the joint resolution, the Arbitration Agreements Rule has no force or effect. On Nov. 22, 2017, the Bureau published a notice removing the Arbitration Agreements Rule from the Code of Federal Regulations.
The materials relating to the Arbitration Agreements Rule on the Bureau’s website are for reference only.

If you have opened a bank or credit card account, it’s likely that your contract included an arbitration clause. Arbitration clauses can limit your options if you have a legal issue with a financial service provider.

Specifically, arbitration clauses can block people from bringing or joining group lawsuits, also known as “class action lawsuits.” No matter how many people are harmed by the same conduct, most arbitration clauses require people to bring claims individually against the company, outside the court system, before a private individual (an arbitrator). Companies know that people almost never spend the time or money to pursue relief when the amounts at stake are small, so few people do this

Our new rule will restore the ability of groups of people to file or join group lawsuits. In some cases, not only will companies have to provide relief, they will also have to change their behavior moving forward.

People who would otherwise have to go it alone or give up, will be able to join with others to pursue justice and some remedy for their harm. 

If you want to learn more about arbitration and how we’re working to protect your rights, we have additional information and resources.  

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