Drudge Retort: The Other Side of the News
Wednesday, October 25, 2017

For decades, credit card companies and banks have inserted arbitration clauses into the fine print of financial contracts to circumvent the courts and bar people from pooling their resources in class-action lawsuits. By forcing people into private arbitration, the clauses effectively take away one of the few tools that individuals have to fight predatory and deceptive business practices. The new rule written by the Obama consumer bureau, which was set to take effect in 2019, would have restored the right of individuals to sue in court. It was part of a spate of actions by the bureau, which has cracked down on debt collectors, the student loan industry and payday lenders.

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The overturning of the rule, with Vice President Mike Pence breaking a 50-to-50 tie, would further loosen regulation of Wall Street as the Trump administration and Republicans move to roll back Obama-era policies enacted in the wake of the 2008 economic crisis. By defeating the rule, Republicans are dismantling a major effort of the Consumer Financial Protection Bureau, the watchdog created by Congress in the aftermath of the mortgage mess.

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Wow... the parties really are the same, right?

Still one of the most myopic memes ever regurgitated.

#1 | Posted by Corky at 2017-10-24 11:45 PM | Reply | Funny: 1 | Newsworthy 2

JeffJ will be overjoyed that his consumer protections are being weakened. The CFPB was real pet peeve of his. (For purely procedural, Constitutional matters, of course. Not because right-wingers oppose its existence and for that matter enacting any new consumer protection measures whatsoever.)

#2 | Posted by snoofy at 2017-10-25 12:02 AM | Reply | Newsworthy 1

The swamp must be bone dry now.

#3 | Posted by bored at 2017-10-25 12:45 AM | Reply

The executives at Wells Fargo are partying hardy, they love these Republicans who want them to be able to rip us off in secret, charging us fees for credit cards we don't even know we have. I'm sorry, I'd be embarrassed to admit I voted for these bought and paid for whores.

#4 | Posted by danni at 2017-10-25 06:15 AM | Reply | Newsworthy 3

Restoring power to the people*
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*-the people that matter, ie. not you.

#5 | Posted by 726 at 2017-10-25 07:14 AM | Reply | Newsworthy 8

America is great again!

#6 | Posted by MrSilenceDogood at 2017-10-25 07:23 AM | Reply

Don't worry, this is just letting the wall street banks self regulate, you know like Wells Fargo did when they opened 3,500,000 unauthorized accounts for their customers who incurred $6 million in fees. See now they can force each customer into arbitration or each customer can hire an attorney to sue individually. See how they are restoring power to the people?

The GOP is pure scum.

#7 | Posted by 726 at 2017-10-25 09:13 AM | Reply | Newsworthy 4

Equifax execs too are celebrating. They are still in business after displaying the most incompetent handling of millions of American's personal data, mobs should overrun their headquarters and destroy every computer in their building. These idiots are not competent enough to operate and adding machine much less the computer files holding our credit histories, SS numbers, birthdates, names, etc. But hey, we don't want Dodd-Frank to "overregulate" these incompetent (crooked) people. How do we even know that the security breach wasn't rewarded by some nefarious group who wanted all that information so that they could hack American's bank accounts, credit accounts, etc. It is only reasonable to suspect foul play.

#8 | Posted by danni at 2017-10-25 09:33 AM | Reply | Newsworthy 3

" mobs should overrun their headquarters and destroy every computer in their building"

#8 | POSTED BY DANNI

this kind of talk may be grounds for incarceration in another year.

#9 | Posted by ABlock at 2017-10-25 10:06 AM | Reply

"this kind of talk may be grounds for incarceration in another year."

But no chance of incarceration for those executives that very possibly intentionally sold all of that data to nefarious people who will use it to steal identities. Personally, I've had to challenge two charges to my bank account and get another new debit card (second time in 3 months) because someone had my information. The crime of identity theft is increasing and, at some point, will cripple legitimate business transactions. Someone from Equifax is a crook, IMHO. I just don't believe that such a major company could actually be so stupid, perhaps there should be a criminal charge for such incredible stupidity if that is really what caused their irresponsible handling of millions of people's information.
BTW, I don't think anyone from Wells Fargo went to jail either and that was definitely not an accident, they open fake accounts and charge fees without informing customers intenionally, why is no one going to jail?

#10 | Posted by danni at 2017-10-25 10:16 AM | Reply | Newsworthy 1

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#10 | POSTED BY DANNI

Sinclair Lewis, " It Can't Happen Here "......Yes it can and we're beginning to see the proof

#11 | Posted by ABlock at 2017-10-25 10:24 AM | Reply

Sinclair Lewis...."The Jungle." Relevant to today's appointments to positions like FDA, EPA, etc. Trump wants to recreate the world Lewis was writing about. We're going to need a modern day Sinclair Lewis to illuminate the horrors of the world they are trying to recreate.

#12 | Posted by danni at 2017-10-25 10:30 AM | Reply

#12
Upton Sinclair

#13 | Posted by ABlock at 2017-10-25 10:34 AM | Reply

"#12
Upton Sinclair"

Thank you. Get my Sincairs mixed up.

#14 | Posted by danni at 2017-10-25 10:36 AM | Reply

#14

Theodore Dreiser..he's one if not the, best. period.

#15 | Posted by ABlock at 2017-10-25 10:53 AM | Reply

"Theodore Dreiser..he's one if not the, best. period."

I will look him up.

#16 | Posted by danni at 2017-10-25 11:05 AM | Reply

#16

the financier..the titan..sister carrie..------ jeff..an american tragedy

#17 | Posted by ABlock at 2017-10-25 11:21 AM | Reply

After working at financial institutions in charge of their data security, I get why this was removed. People are already allowed to sue FIs regardless of fault. For instance, someone can put their Debit Card information and PIN on an Internet page and then sue the FI once people have used it to buy things. It's actually happened before. While Reg E has it's uses, it is way too broad and does too much to protect cardholders. However, in the case of Equifax, it was solely their fault they got breached and it's been proven they were negligent. That should be open game for anyone, not just other FIs to compensate for the losses to their cardholders. Many people don't know that any losses from credit/debit are losses to their bank, not to whoever causes the loss. The bank has to then go to the company responsible and try to get 100% compensation but they rarely get anything close. One small FI I worked for had $354k in losses because of Home Depot and ended up getting nothing. Thus, they have to raise rates to cover this kind of crap.

#18 | Posted by humtake at 2017-10-25 11:29 AM | Reply

Now wait a minute... I am not 100% clear here - one chamber of the legislature has the ability to reverse/disapprove this change made by the executive branch? It doesn't require a vote by the House and Senate and Presidential signature/veto override? Where does that power come from? I THOUGHT this was the case: If the House and Senate pass a resolution of disapproval and the President signs it (or if both houses override a presidential veto), the rule becomes void and cannot be republished by an agency in the same form without Congressional approval.

Regardless I am disgusted by this. It's absolutely nauseating that someone thought this was a good idea to Not do. Spouting talking points without producing any examples of why it was bad. This is protectionism for big business to rip off Americans. Look I don't think class actions really get anywhere typically. I would characterize the results as "dismal" for most of those taking part BUT they do create large costs for businesses and actually have an effect on reprehensible behavior (See Wells Fargo and Equifax as just 2 possible examples).

#19 | Posted by GalaxiePete at 2017-10-25 11:44 AM | Reply

After working at financial institutions in charge of their data security, I get why this was removed. People are already allowed to sue FIs regardless of fault. For instance, someone can put their Debit Card information and PIN on an Internet page and then sue the FI once people have used it to buy things. It's actually happened before. While Reg E has it's uses, it is way too broad and does too much to protect cardholders. However, in the case of Equifax, it was solely their fault they got breached and it's been proven they were negligent. That should be open game for anyone, not just other FIs to compensate for the losses to their cardholders. Many people don't know that any losses from credit/debit are losses to their bank, not to whoever causes the loss. The bank has to then go to the company responsible and try to get 100% compensation but they rarely get anything close. One small FI I worked for had $354k in losses because of Home Depot and ended up getting nothing. Thus, they have to raise rates to cover this kind of crap.

#18 | POSTED BY HUMTAKE

This entire post has literally nothing to do with the substantive change of disallowing either law suits or class action lawsuits. The occasional stupid lawsuit doesn't mean barring lawsuits and class actions is a good idea.

This is a huge win for banks and other financial institutions because now the only entity which can stop them is the Feds...and the Feds are in their pockets.

Thanks Republicans.

#20 | Posted by Sycophant at 2017-10-25 11:50 AM | Reply | Newsworthy 8

When given a choice to help the American people, or only help the rich and powerful, most Republicans vote to help the rich and powerful. Every. Single. Time.

Wake up friends. They aren't working for us

#21 | Posted by Whatsleft at 2017-10-25 12:10 PM | Reply | Newsworthy 4

#21 No no no, dotard told us in January he was "restoring power to the people". He didn't lie, did he?

#22 | Posted by 726 at 2017-10-25 12:14 PM | Reply | Funny: 2

#18 | POSTED BY HUMTAKE

I don't know how your former employer lost out on the reimbursement from Home Depot. Home Depot is on the hook for the losses due to negligence in their security. There is a lot of variability for sure in who is responsible for the financial hit. For example in simple card fraud, online transactions and other Card Not Present transactions it is the merchant who the responsibility falls to but I can see how small operations would be completely unable to reimburse.

#23 | Posted by GalaxiePete at 2017-10-25 01:18 PM | Reply

Just listening to The Takeaway on NPR at lunch and they had a great piece on about pollution. It may seem unrelated but wait...

Researchers have published a new report. It amounts to a ledger sheet on the human and financial costs of pollution. They believe they have kept their numbers conservative. The report estimated that pollution costs the world's economy $4.6 trillion a year and 9 million lives. The Takeaway

Now why is this important and relevant to this article. Basically by voting to kill the rule change, most of the right wing and Pence have said small people don't matter and (corporate)fiscal responsibility isn't important. This article is simply more proof that alt Right and GOPers in general couldn't give 2 sheets about ordinary people or fiscal responsibility. If they did, they wouldn't be gutting the EPA as well as clean air and water initiatives. The study gives numbers to support the cost of NOT caring the environment. This isn't even about Global Warming aka Climate Change.

Sorry but the people posting here that are backing the GOP at this time are only fooling themselves. I know there is no changing their minds but the pure absurdity of their beliefs vs the actual reality continues to floor me. I truly wish I could peer into their brains to understand how they rationalize these things.

It's kind of like the story of this Trumpite: Daily Beast. I have no doubt this one is schizophrenic but not all Trump / GOP supporters are. I actually know a guy like him. He was finally diagnosed and you should see the change in him since he got meds.

#24 | Posted by GalaxiePete at 2017-10-25 01:33 PM | Reply

The republicans keep making it harder to seek redress and limiting any awards. For some reason they can't figure out that if bad behavior is profitable and has no real threat of consequence the bad behavior will continue.

A great example of this is the Wisconsin small claims court. It was designed for small claims. In recent years they have added requirements that require the person suing to be present for the hearing (Used to be able to do it all via mail) added a $90 filing fee, and limited awards to 3 times actual damages and disallowed attorneys fees as compensation.

so for claims under $45 it is impossible to break even by suing in small claims court.

#25 | Posted by hatter5183 at 2017-10-25 04:14 PM | Reply

RE #18

Garbage. This is just republican spin (crap).

To pull this crap right after Wells Fargo and Equifax is just a slap in the face of the American consumer and middle class.

This is obvious a giveaway to big banks and credit card companies and credit agencies to get them to support and not lobby against his give away tax reform bill that will also obviously screw the American middle class.

Invest in KY or your butt is gonna be real sore from all the screwing we are about to get from this administration. The resistance is real but Trump still has 3 more years to keep shoving this crap up our rears.

#26 | Posted by donnerboy at 2017-10-25 07:18 PM | Reply

"To pull this crap right after Wells Fargo and Equifax is just a slap in the face of the American consumer and middle class."

It was not a coincidence that this comes on the heels of both of those scandals.

#27 | Posted by danni at 2017-10-26 09:08 AM | Reply

"This week, the department weighed in directly on the arbitration rule, warning that the regulation could unleash frivolous lawsuits, costing financial firms an estimated $500 million in legal fees alone."

If you look at the size of these banks, that's not that large of a number anymore. When you consider how much they can make from one their little "tweaks" that benefits the bank in the hundreds of millions of dollars.....those legal fees are appropriate.

If you're too big to handle the exposure then 1. stop screwing people or 2. get smaller.

either way, there is no defense for this. This isn't about the single share of a large class action suit. It's a way to keep large financial institutions in check with their business practices. That regulation forces banks to work hard to prevent those kinds of shenanigans in the first place.

#28 | Posted by eberly at 2017-10-26 09:32 AM | Reply

"This entire post has literally nothing to do with the substantive change of disallowing either law suits or class action lawsuits."

Seriously? You have a very narrow understanding of lawsuits, my friend. Disallowing lawsuits sets precedents. Almost every litigation in America is influenced by past litigations. It filters down to ALL lawsuits, not just specifics because a business was allowed to do something or a person was allowed to do something. Legal results span all litigation.

#29 | Posted by humtake at 2017-10-26 11:22 AM | Reply

If you're too big to handle the exposure then 1. stop screwing people or 2. get smaller.

You forgot the correct answer...buy off the GOP to kill any law that holds them accountable.

#30 | Posted by 726 at 2017-10-26 12:11 PM | Reply

Whew! Thank God Dotard and Pence are not beholden to Wall Street like Hitlery was....wait.....

#31 | Posted by 726 at 2017-10-26 12:12 PM | Reply

30

Agreed

31

I felt like the arguments were that Trump and Hillary were on equal footing with Wall street...not that only Hillary was beholden.

#32 | Posted by eberly at 2017-10-26 12:14 PM | Reply

The Consumer Protection Agency has forced disgorgement of $12 billion in fraudulent charges against millions of customers who could never afford to fight back over $300 or $30 at a time. Republicans are rushing to rescue of the criminal Bankers, Credit Bureaus....

#33 | Posted by bayviking at 2017-10-26 07:20 PM | Reply

No difference between the major parties; right, "libertarians"?

#34 | Posted by e1g1 at 2017-10-26 10:24 PM | Reply

I felt like the arguments were that Trump and Hillary were on equal footing with Wall street...not that only Hillary was beholden.
#32 | POSTED BY EBERLY

She would have at least continued the consumer protections that Obama implemented and maybe even strengthened them.

And at least she is not "beholden" to Pooty Poot.

#35 | Posted by donnerboy at 2017-10-27 05:58 AM | Reply

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