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Republicans Succeed in Repealing Consumer Financial Protection

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posted on Oct, 24 2017 @ 11:27 PM
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www.politico.com...

With Pence casting the tie breaking vote, the Consumer Financial Protection Act Arbitration Rule that was the teeth of the Consumer Financial Protection Bureau has been undone. To quickly summarize, this bill empowered consumers who wished to sue banks & credit card companies (primarily through class action lawsuits). Republicans are arguing that the bill merely served to enrich lawyers (who they claimed would be the primary beneficiaries of such lawsuits) and that by repealing the bill they are improving the situation for consumers since they believe arbitration often provides a more favorable result for consumers (the facts do not support this).

That being said, the act itself did not limit arbitration (so if a consumer wished to opt for arbitration rather than a lawsuit, there was no restriction for them in doing so).

Additionally, the actual arbitration clauses most of these entities employ utilizes arbitrators hired by the banks or credit card companies, and therefore partial to those entities rather than as impartial judges of the situation (the overwhelming majority of rulings are/were in favor of the banks/CC companies).

I would really love to hear from those who are proud of this action and why (or how they can justify this as a good thing). The cult of personality is so strong right now I have to imagine there are ATS members who are capable of viewing this as a righteous and good thing for the American People.




posted on Oct, 24 2017 @ 11:31 PM
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From article...



Senate Republicans on Tuesday night leaned on a tie-breaking vote from Vice President Mike Pence to kill a landmark financial regulation that restricts banks and credit card companies from imposing mandatory arbitration on their customers as a means to resolve disputes.


What's your complaint? it reads like they ended the arbitration scam and now you can sue bad businesses.
edit on 10 by Mandroid7 because: added2



posted on Oct, 24 2017 @ 11:33 PM
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I'd like to know what was the track-record of the CFPA? Were many lawsuits won because of it?



posted on Oct, 24 2017 @ 11:35 PM
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a reply to: Wayfarer


they ended the arbitration scam


Well then, see how easy that was.



posted on Oct, 24 2017 @ 11:40 PM
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I wish they would show that much solidarity for things that actually matter like repealing the ACA.



posted on Oct, 24 2017 @ 11:41 PM
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a reply to: Wayfarer

Here is a good article on it:

www.consumerreports.org...


edit on 24-10-2017 by infolurker because: (no reason given)



posted on Oct, 24 2017 @ 11:42 PM
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a reply to: Mandroid7

I can't tell if you're joking or not. Did you actually read what you linked?



posted on Oct, 24 2017 @ 11:44 PM
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Those class action lawsuits are a scam. The only ones that profit are lawyers. A ten million dollar lawsuit is won and the lawyers get eight million then the two million left gets handled by someone to disperse who get a million bucks, friends of the law firm. The one million is split between ten thousand people who get a hundred bucks apiece, they basically get nothing.

This leads to extremely huge increases of the cost of doing business over a time and all that cost is passed down to consumers by increases in the insurance the companies pay. The cost is spread out between all the people getting insurance, so the company doing the bad thing loses no more than anyone else in that insurance class. We the consumers suffer for this get rich scheme by some law firms. Not many lawyers do that, maybe a few percent of them do.



posted on Oct, 24 2017 @ 11:47 PM
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a reply to: TerryMcGuire

Actually its the opposite of what you are thinking.

I was hoping supporters could give me more concrete explanation other than saying the reverse of whats actually occurring. The bill existed to prevent Banks and CC companies from imposing MANDATORY ARBITRATION. Now that the bill is dead, they can return to imposing MANDATORY ARBITRATION.

All of this dovetailing on the Equifax hack, which I find as supremely ironic timing. From my vantage it would seem the Republicans saw the Equifax hack as an unfair take on poor Equifax (ie. the consumers are the real evil ones in that whole scenario).



posted on Oct, 24 2017 @ 11:49 PM
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originally posted by: rickymouse
Those class action lawsuits are a scam. The only ones that profit are lawyers. A ten million dollar lawsuit is won and the lawyers get eight million then the two million left gets handled by someone to disperse who get a million bucks, friends of the law firm. The one million is split between ten thousand people who get a hundred bucks apiece, they basically get nothing.

This leads to extremely huge increases of the cost of doing business over a time and all that cost is passed down to consumers by increases in the insurance the companies pay. The cost is spread out between all the people getting insurance, so the company doing the bad thing loses no more than anyone else in that insurance class. We the consumers suffer for this get rich scheme by some law firms. Not many lawyers do that, maybe a few percent of them do.



Thanks for the reasoned response.

So then are the consumers to rely on the good will of companies and their hired arbitrators when malfeasance is afoot? Is a cheaper product a worthwhile trade for being able to go after companies that injure consumers?

I would imagine that the aspect of class action lawsuits that you are neglecting to mention is while you are correct in many cases about the amount of money that eventually makes it to the plaintiffs, they serve as a heavy hammer that can affect real change against companies by imposing huge penalties (far greater than anything derived from arbitration).
edit on 43pm17fpmTue, 24 Oct 2017 23:50:48 -0500America/ChicagoTue, 24 Oct 2017 23:50:48 -0500 by Wayfarer because: (no reason given)



posted on Oct, 24 2017 @ 11:53 PM
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originally posted by: Wayfarer
a reply to: Mandroid7

I can't tell if you're joking or not. Did you actually read what you linked?


I didn't link anything, I quoted the article you linked.

The only businesses using arbitration are garbage businesses. It's a protection from bad business practices lawyered into the fine print in t&c's of service.

edit.

yeah your right, mu bad, I read it wrong, but I am going to try and read an actual bill.

This article makes no sense and has biased anti trump crap is all over the site.

Can we agree that arbitration is already in use?
This article is claiming it was illegal, and now it's cool

something doesn't jive here




edit on 10 by Mandroid7 because: edited added2



posted on Oct, 24 2017 @ 11:55 PM
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a reply to: Wayfarer

OK, here is the deal:

How Obama is funding the anti-Trump resistance
nypost.com...




The Obama administration’s massive shakedown of Big Banks over the mortgage crisis included unprecedented back-door funding for dozens of Democratic activist groups who were not even victims of the crisis.

At least three liberal nonprofit organizations the Justice Department approved to receive funds from multibillion-dollar mortgage settlements were instrumental in killing the ObamaCare repeal bill and are now lobbying against GOP tax reform, as well as efforts to rein in illegal immigration.

An estimated $640 million has been diverted into what critics say is an improper, if not unconstitutional, “slush fund” fed from government settlements with JPMorgan Chase and Co., Citigroup Inc. and Bank of America Corp., according to congressional sources.

The payola is potentially earmarked for third-party interest groups approved by the Justice Department and HUD without requiring any proof of how the funds will be spent. Many of the recipients so far are radical leftist organizations who solicited the settlement cash from the administration even though they were not parties to the lawsuits, records show.



This whole scam of an organization is a Government front to levy fines and funnel the money to Left wing activist groups.





Still, The Post has learned that the Consumer Financial Protection Bureau continues to force financial institutions it prosecutes to donate to third-party community organizers. More, penalties in such cases are deposited into the Bureau’s now-$170 million-plus Civil Penalty Fund, which has, in turn, channeled almost $30 million to “consumer advocacy” groups.

CFPB director Richard Cordray is an Obama holdover, whose special five-year term doesn’t expire until 2018.

The Independent Community Bankers of America, a national voice for more than 5,700 large and small banks, said it opposes the government practice of providing back-door funding to unrelated groups.

“ICBA believes the funds should go towards affected victims,” a spokeswoman for the banking trade association told The Post.

edit on 24-10-2017 by infolurker because: (no reason given)



posted on Oct, 24 2017 @ 11:58 PM
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originally posted by: Mandroid7

originally posted by: Wayfarer
a reply to: Mandroid7

I can't tell if you're joking or not. Did you actually read what you linked?


I didn't link anything, I quoted the article you linked.

The only businesses using arbitration are garbage businesses. It's a protection from bad business practices lawyered into the fine print in t&c's of service.


Thats pretty much all Banks and Credit Card Companies.



posted on Oct, 25 2017 @ 12:03 AM
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a reply to: infolurker

Well I appreciate you responding with an interesting take, but its a bit of a strawman. I would suggest you create a thread specifically diving into that aspect if you haven't already. I'd rather hear your take on whether you believe the consumer is better served with forced arbitration or class action lawsuits and why.



posted on Oct, 25 2017 @ 12:05 AM
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originally posted by: Wayfarer

originally posted by: rickymouse
Those class action lawsuits are a scam. The only ones that profit are lawyers. A ten million dollar lawsuit is won and the lawyers get eight million then the two million left gets handled by someone to disperse who get a million bucks, friends of the law firm. The one million is split between ten thousand people who get a hundred bucks apiece, they basically get nothing.

This leads to extremely huge increases of the cost of doing business over a time and all that cost is passed down to consumers by increases in the insurance the companies pay. The cost is spread out between all the people getting insurance, so the company doing the bad thing loses no more than anyone else in that insurance class. We the consumers suffer for this get rich scheme by some law firms. Not many lawyers do that, maybe a few percent of them do.




Thanks for the reasoned response.

So then are the consumers to rely on the good will of companies and their hired arbitrators when malfeasance is afoot? Is a cheaper product a worthwhile trade for being able to go after companies that injure consumers?

I would imagine that the aspect of class action lawsuits that you are neglecting to mention is while you are correct in many cases about the amount of money that eventually makes it to the plaintiffs, they serve as a heavy hammer that can affect real change against companies by imposing huge penalties (far greater than anything derived from arbitration).


The company usually loses nothing, the insurance cost is spread amongst many policy holders in commercial business insurance. Only in cases of known negligence can a company actually be charged. I had business insurance, I had to back whatever the insurance company would try to do even if I actually was at fault. I never had a claim, but knew how it worked because I ask a lot of questions. The business insurance can be canceled by the insurance carrier though.

I believe a person has the right to sue if something is wrong, I just do not believe in class action lawsuits.

edit on 25-10-2017 by rickymouse because: (no reason given)



posted on Oct, 25 2017 @ 12:10 AM
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a reply to: Wayfarer

Arbitration is already used. So a bill is made to allow it to be used?

Does this even make sense?



posted on Oct, 25 2017 @ 12:11 AM
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a reply to: rickymouse

That's a fair shake, and I trust your opinion as a (seeming) business owner of some sort. So would you say you are pleased with the Republican's repeal (even though forced arbitration is likely going to return to rule the roost)?
edit on 43am17famWed, 25 Oct 2017 00:13:55 -0500America/ChicagoWed, 25 Oct 2017 00:13:55 -0500 by Wayfarer because: (no reason given)



posted on Oct, 25 2017 @ 12:13 AM
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originally posted by: Mandroid7
a reply to: Wayfarer

Arbitration is already used. So a bill is made to allow it to be used?

Does this even make sense?






The bill prevented Banks and CC companies from forcing arbitration (therefore allowing consumers to sue if they wished). Now that its been repealed, Banks and CC companies can return to forced arbitration where the consumer has no right to sue (and must submit to the forced arbitration).



posted on Oct, 25 2017 @ 12:19 AM
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originally posted by: Wayfarer
a reply to: rickymouse

That's a fair shake, and I trust your opinion as a (seeming) business owner of some sort. So would you say you are pleased with the Republican's repeal (even though forced arbitration is likely going to return to rule the roost)?


If a person is wronged, arbitration usually returns more to the one who is wronged than joining a class action lawsuit. There are some strange rules applied to class action suits, if you do not join, you could lose your ability to ever sue in the future.



posted on Oct, 25 2017 @ 12:25 AM
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Not really.....

They have basically killed something that doesn't even exist yet. It wasn't even due to take affect until 2019. Department of the Treasury is against it as well.

Another Obama "land mine". Have bad crap kick in AFTER you have left office.

I assume you know that the "Trial Lawyers" associations are huge Democrat donors right? It appears this whole "regulatory body" was formed to do nothing but funnel money to Democratic Party donors and organizations. I hope they dissolve the whole organization.

www.nytimes.com...




The arbitration rule, which is set to take effect in 2019

Treasury said the rule could deal an expensive blow to financial institutions, costing them more than $500 million in legal defense fees. The real winner, the report says, are class action lawyers. At its center, the report questions the very analysis the consumer agency used to create its signature rule.


thehill.com...




A Treasury Department analysis of the rule released earlier this week argued the measure would lead to 3,000 more class-action suits over the next five years.

The report argues that the rule, meant to prevent financial services companies from blocking class-action lawsuits against them, would lead to 3,000 more suits over the next five years. The department claims those class-actions suits would impose more than $500 million in legal defense fees, giving $330 million to plaintiffs’ lawyers.

“The Bureau’s Rule would upend a century of federal policy favoring freedom of contract to provide for low-cost dispute resolution,” the report states.

“An agency implementing such a drastic shift in policy should typically subject its rulemaking to the rigors of cost-benefit analysis and require incremental efficiency justification for more stringent regulations,” the department wrote.




Imagine for a second if the Republicans created a Regulatory organization that levied fines against businesses / banks and then funneled the money directly to organizations like the Heritage foundation, Pioneer Institute, and Right to Life Organizations. That is what is happening with this so called regulatory body. It is a left wing slush fund.
edit on 25-10-2017 by infolurker because: (no reason given)



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