CFPB wants to let consumers sue banks, credit-card companies

(RECAP: The Consumer Financial Protection Bureau unveiled a proposed rule Thursday to restrict the use of arbitration clauses in consumer financial contracts, a step that would shift power to consumers and away from companies for a wide range of financial products from credit cards to bank accounts to private student loans. The CFPB aims to prohibit financial companies from using mandatory-arbitration clauses in contracts with consumers as a way to block class-action lawsuits and force customers into private negotiations to solve disputes. The clauses have become standard in recent years, aided by a string of court rulings that have limited consumers’ ability to file lawsuits.)