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President Trump Signs Bill Giving Financial Fraudsters a Get-Out-Of-Jail-Free Card

Wednesday, November 1, 2017
Melissa Stegman

Washington, D.C. – Today, President Trump signed into law a bill, H.J. Res. 111, that takes away Americans’ right to have their day in court when they are defrauded by banks, credit card companies, payday lenders, student loan servicers, and other financial companies. It does so by rescinding a rule, issued by the independent Consumer Financial Protection Bureau, which would have restored the right of similarly harmed consumers to band together to challenge financial institutions in court.

Center for Responsible Lending (CRL) Senior Policy Counsel Melissa Stegman released the following statement:

President Trump just handed a get-out-of-jail-free card to financial fraudsters. This unjust law enables companies to block group lawsuits by consumers, thus removing an indispensable check on corporate misconduct. Instead, this law lets companies force consumers into a secret arbitration system rigged against them – discouraging claims and allowing companies like Wells Fargo and Equifax to hide widespread consumer abuse. Despite this setback, CRL will continue to fight for the right of consumers to have their day in court.

For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at matthew.kravitz@responsiblelending.org or 202-349-1859.