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CFPB announces rule that could help consumers sue financial firms for millions

Angry consumers may soon have a new way to find justice when they think companies have done them wrong.

The Consumer Financial Protection Bureau announced a final version of a rule Monday that would ban companies from using language in their contracts called “mandatory arbitration clauses” that prohibit consumers from bringing class-action suits against them. The rule would apply to institutions that sell financial products including bank accounts and credit cards.

Currently, the clauses typically say that companies or customers must resolve disputes through privately appointed individuals known as arbitrators, but not through the court system, allowing companies to save time and money and avoid negative publicity.

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