Wells Fargo Chief Questioned over Arbitration Requirement

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 Wells Fargo Chief Executive Timothy Sloan at Senate hearing Tuesday

By EMILY GLAZER and ANDREW ACKERMAN, Oct. 4, 2017 for The Wall Street Journal
[As a follow-up to yesterday’s blog on the Supreme Court’s current review of arbitration versus class actions, we post the following excerpt from an article in WSJ on the Senate’s review of the Wells Fargo scandal. Big business and the Court’s conservative justices seem to be using identical arguments to justify the perfidy of arbitration.]
Sen. Warren was the only senator to call for Mr. Sloan’s firing. Other Democratic senators asked if Wells Fargo would commit to no longer using forced arbitration clauses, which limit consumers to using arbitration to resolve disputes over financial services. Mr. Sloan did say he’d try to minimize the number of customer disputes that go to arbitration.

 

“Limiting the number of times is good, but give them their day in court,” Sen. Sherrod Brown (D, Ohio) said.

The debate around Wells Fargo’s arbitration policies [is] part of a Senate fight over a Consumer Financial Protection Bureau rule approved in July barring fine-print requirements over forced arbitration.

Democrats are fighting GOP-led efforts to use legislation to kill the rule, saying forced arbitration diminishes legal protections for everyday people and prevents them from joining together to bring class-action lawsuits.

Critics in the financial industry and Republicans in Congress say arbitration provides a faster and more cost-effective way to resolve disputes with consumers.

[It’s also cheaper and more efficient to hang a man than confine him to life imprisonment, but that recourse has little to do with justice.]

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