![]() ![]() ![]() ![]() That’s exactly what happened with Wells Fargo, and why the abuses could go on so long. Keeping cases out of court means abuses are kept out of the spotlight. The problem isn’t just that aggrieved consumers don’t have access to a remedy. Effectively, banks and other corporations are free to rip off their consumers without fear of being held accountable in court. It’s generally not worth the time and money to bring a case individually, and there’s a disincentive to proceed in arbitration, where claims are decided by a private firm handpicked and paid by the corporation rather than a judge or jury. So when lots of consumers have suffered small harms - as was the case with Wells Fargo - there’s nothing they can do. Instead, ripoff clauses force consumers to seek redress in private arbitration, on an individual basis. These provisions, also known as “forced arbitration” clauses, prevent consumers from suing over wrongdoing in court and prohibit consumers from banding together in class actions. ![]() Like most big banks and many other corporations, Wells Fargo buries ripoff clauses in the fine print of its customer contracts. It’s past time to prohibit the “ripoff clauses” that prevent consumers from enforcing their most basic legal rights. How did Wells Fargo get away with it for so long?Ī big part of the story: Wells Fargo contract provisions blocked consumers from suing the bank in court. Wells Fargo’s scandalous practice of secretly opening more than 2 million sham deposit and credit card accounts dragged on for at least five years. ![]()
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