California moves forward on letting customers sue banks, inspired by Wells Fargo

California took another step on Tuesday toward allowing state residents to sue financial institutions for fraud, rather than letting banks force customers to settle disputes in arbitration, as a bill inspired by last year’s Wells Fargo scandal passed a key Assembly committee.

The bill has already passed the state Senate. The full Assembly, the legislature’s lower chamber, is expected to approve it in a vote toward the end of August, after the summer recess.

Under the bill, judges could override contract clauses that require customers to settle disputes through arbitration in cases where a bank commits fraud using customers’ personal information. Arbitration clauses, which have become standard practice since a 2011 U.S. Supreme Court decision, make consumers agree not to sue in the future as a condition of purchasing products or services.
Read on.

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One response to “California moves forward on letting customers sue banks, inspired by Wells Fargo

  1. Pingback: California bill would allow consumers to sue banks for fraud | California freelance paralegal

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