Newsroom

December 01, 2016

Brown introduces Wells Fargo-inspired bill

Reports say Senate Banking Committee Ranking Member Sherrod Brown, D-Ohio, has introduced a bill to prevent Wells Fargo from using arbitration clauses to keep consumers from taking them to court.

Brown's "Justice for Victims of Fraud Act" would be enforced in conjunction with the CFPB's arbitration rule. Brown's bill would allow fraud victims to sue Wells Fargo regardless of whether they had signed arbitration contracts for their legitimate accounts.

The CFPB has said it plans to finalize its arbitration rule in February, but legal questions about the bureau's structure and opposition from President-elect Trump's administration may alter the rule's timeline. NAFCU has raised concerns about the potential unintended consequences the rule could have on credit unions and their members.