WSJ: Where Was CFPB While Wells Fargo Plundered?

F. Paul Bland asserts (Letters, Sept. 12) that the Consumer Financial Protection Bureau rule is necessary to avoid “immunity” for Wells Fargo for creating fake accounts. Like most antiarbitration rhetoric, this is fiction. The CFPB’s antiarbitration rule isn’t even in effect, yet government authorities (not class-action lawyers) required Wells Fargo to provide full restitution for consumers, fined the bank an additional $185 million in addition to Wells Fargo losing substantial market share from…

WSJ: Congress Can Rescind the CFPB’s Gift to Trial Lawyers

Do Americans need more lawsuits? They’ll get them if the Consumer Financial Protection Bureau has its way. The CFPB—created by the Dodd-Frank Act of 2010 and still run by an Obama appointee—issued a rule in July barring financial institutions from including arbitration clauses in their contracts with customers. That means disputes would have to be settled by class-action lawsuits, which mostly benefit lawyers. The agency justifies its rule by claiming it…

Protecting consumers from swindlers: How ‘fake facts’ make millions for class-action lawyers

The too-common scam goes like this. Trial lawyers bring a class action against a business, alleging unfair charges or false advertising and seeking to recover a few dollars each for thousands or millions of its customers. It’s okay if the case is weak, because the defendant still finds it cheaper to settle the lawsuit for a small percentage of the total losses alleged than to fight on.

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