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CFPB wants to make it easier for customers to sue banks

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Mortgage Professional America | 09 May 2016, 06:30 AM Agree 0
The CFPB is proposing a rule that would ban binding arbitration agreements and allow customers to pursue class-action lawsuits against financial institutions
  • | | 09 May 2016, 11:22 AM Agree 0
    I am fine with this if banks also have the right to sue the CFPB and the Treasury Department and/or have the right for recover legal fees for false claims and legal charges from these agencies. Who would want to lend money to anybody in this Salem Witch Trial environment. Many (but not all) of these fines from the CFPB do not rectify and wrongs rather the funds collected go back to the particular agency to further feed their out of control growth. It becomes self-sustaining and of course the average person is hurt in higher lending costs and and in not being able to get a mortgage for fear of the bank's being sued in making that mortgage. This is what happens when government becomes the primary player in the overall economy. Hence, government economists clapping their hands with a .5% GDP number. Disgraceful!
  • JCRussell | | 09 May 2016, 11:38 AM Agree 0
    Class action lawyers are licking their chops......They can make millions while class members get a check/voucher/account credit for $2.13.....

  • | | 09 May 2016, 11:54 AM Agree 0
    Number one should be a class action suit for Borrowers who are steered to the in house lender who is being paid a handsome fee for their unethical kickback in the form of a Marketing agreement and the in house lenders rates are much higher than what the borrower could receive if they shopped. I know I know the old saying is they could shop with whoever they want but the big issue is that most of these buyers have no idea that the realtor is referring them to a company whose rates are so high to cover the cost of these agreements. These should be stopped or at least have the in house lenders have a competitive price. Right now we are seeing local companies who are in these agreements charging between a 1/4% to a 1/2% higher rate. The borrower puts there faith in the realtor who in reality is screwing the client. These should be stopped immediately but maybe a class action lawsuit will do the trick. Please do not use the argument that we are complying we all know they are just a kickback no matter how you slice and the only benefitting are the mortgage mortgage officer who is in the agreement the mortgage company and the Owner of the Real Estate company. What is compelling is the realtor who is referring the client gets little in return.
  • KAS | | 09 May 2016, 08:06 PM Agree 0
    CFPB---go away!!! The Arbitration and Mediation is there for a very good reason!!!! Cut down on expensive and frivolous lawsuits. Just like CPBS to get it wrong----only one that profits from a lawsuit is the lawyers or is CFP is in their pockets...just kidding... I suspect the majority of consumers can not afford a long drawn out expensive lawsuit of which they most likely will lose---nor do they have the time, money, or the up/down in emotions and upsets to deal with a lawsuit ... does not pay in the big picture.

    Often the most ethical way is to use mediation/arbitration. In arbitration the parties have right to discovery and I believe enforcement of this agreement is government by the Federal Arbitration Act. I mean even in recommending arbitration vs. lawsuit, should not the "best interest" still be for the consumer.

    ..... the untouchable CFPB is not one to talk.... What the hell is their problem - go get a real job. How much do these guys get paid anyway.
    Are they wanting the banks to fail? The Mediation and Arbitration was an answer unethical lawsuits. CPBS you are going backwards!!!

    CPBS are nothing but bullies! You know as they say: war is profitable. Well it is the same here : CPBS is profitable, but at CPBS or at war how many lives are at risk!

    I have worked years as a mortgage broker/owner and as Real Estate broker/realtor. I have know some fine lawyers. I doubt it they need to take away mediation/arbitration.

    CFPB makes every thing look like is covered in small print. Everything I have read is been in bold and requires and initial. I know our consumers read!
  • kas | | 09 May 2016, 08:07 PM Agree 0
    sorry I really do not it is CFPB (apologize for my typing).
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