IRVINE, CA – 19 May, 2016 – Rescue One Financial, an online firm that helps consumers regain control of their credit card debt, praised a recently proposed federal regulation that would prohibit credit card issuers from blocking customers from filing or joining class action lawsuits.
If ultimately finalized, the Consumer Finance Protection Bureau rule would stop credit card issuers from including in customer contracts, mandatory arbitration clauses that prevent class action suits. Such clauses, which a growing number of consumer advocates are finding controversial, allow either party in a contract to demand that a dispute be settled by a privately chosen, independent arbitrator rather than by a court.
Rescue One Financial fully supports the proposed rule because the company sees firsthand how many people accumulate massive amounts of credit card debt without fully understanding the terms of their contracts.
“Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,” said CFPB director Richard Cordray. “Many banks and financial companies avoid accountability by putting arbitration clauses in their contracts that block groups of their customers from suing them.”
The proposed rule would still allow arbitration clauses, but they would have to clearly state that they may not be used to prohibit class actions.
The CFPB is soliciting public comment on the proposed rule.
In passing the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Congress required the CFPB to study arbitration agreements and deliver a report to Congress, which the bureau did on March 10, 2015. The report found:
• Up to half of all credit card debt is subject to arbitration clauses, but three out of four consumers surveyed didn’t know about them.
• Consumers are very reluctant to sue credit card companies on their own, especially for small claims.
• About 32 million consumers a year are eligible for relief from class actions.
Credit card customers who have accumulated so much debt that they can’t possibly make progress on paying it off, and don’t want the black mark of bankruptcy on their record, can turn to Rescue One Financial for help. Their debt settlement program involves trained credit specialists who will negotiate with your creditors to accept significantly less than the total debt owed, sometimes as little as 40 percent of the original debt.
For more information, call (855) 737-2831 today.
Distributed by Press Release Jet
Company Name: Rescue One Financial
Contact Person: Brad Smith
Phone: (855) 737-2831
Country: United States