Up until recently, banks and other predatory lenders would illegally trick their consumers out of money. Then, when the time came where the consumers were upset enough to sue, they could not. Many of these loan agreements had what is called an arbitration clause.
These fine print clauses did not allow the clients to sue in a court of law for damages, but could only go to arbitration, usually with an arbitrator of the bank’s choice. Finally seeing how unfair these clauses were to the consumers, the Consumer Federal Protection Bureau (CFPB) decided to fight back.
This new rule states that banks cannot use a forced arbitration clause to prevent consumers from fighting back. With this new rule, thousands of consumers who were illegally wronged by a bank or lender may now file a class action lawsuit and get their money back.
Why Class Actions Work
Prior to this rule, each person wronged would have to figure out the wrong, determine their rights, and then spend time and money fighting the bank and their team of lawyers on their own. With a class action lawsuit, all those consumers can fight together, and all find relief. Taking your case to court is a right that big banks should not be able to take away from you.
The days of predatory lenders getting away with extremely biased arbitration clauses is coming to an end. Consumers will now be able to fight back in a way that does not cost them as much or if not more than the original owed payments. Perhaps this will lead to the end of predatory lending, now that banks can no longer get away with the practice. If you feel you were a victim of predatory lending, contact us to determine whether or not you have a case under this new rule.
Those who are successful at obtaining compensation from their bank may be entitled to receive a lot of money as compensation for the situation they were forced to endure. In some cases, plaintiffs are awarded hundreds of millions of dollars to split amongst themselves.
Some plaintiffs are concerned about spending a lot of money on an attorney to pursue compensation on their behalf, but, in the vast majority of cases, these worries are unfounded, as class action lawyers usually provide their services on a contingency fee basis.
This means that if you want to sue your bank for the trouble they have caused you, you only pay for your attorneys services if you win, as your attorneys’ fees are taken out of the total amount awarded to the plaintiffs. In many cases, the attorneys’ fees are paid in addition to the amount that the plaintiffs receive. If that happens to you, the amount you pay for your legal representation will not be deducted from the amount you receive as compensation for your bank’s offense.
Those who have been wronged by their bank should seek assistance from a class action lawyer as quickly as possible after the offense occurs. There are statutes of limitations that limit a plaintiff’s ability to obtain compensation if they wait too long to do so.