In recent decades, banks, credit card companies and other lenders have made enormous profits from excessive fees and charges.
Consumers have been unable to fight back in court because of forced arbitration clauses in the contracts they signed when opening their accounts. Typically, these clauses bar customers from joining together in a class-action lawsuit, usually the only practical and affordable way to challenge corporations.
On Thursday, the Consumer Financial Protection Bureau proposed powerful new rules that, if approved, will prohibit class-action bans in contracts for consumer financial products.
