The CFPB is considering banning lenders from using what it characterized as “free pass” arbitration clauses that prevent consumers from participating in class-action lawsuits. “Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” said CFPB Director Richard Cordray. “Companies are using the arbitration clause as a free pass to sidestep the courts and avoid accountability for wrongdoing. The proposals under consideration would ban arbitration clauses that block group lawsuits so that consumers can take companies to court to seek the relief they deserve.” The proposals the bureau is considering include giving consumers “their day in court” and incentivizing companies to comply with the law to avoid lawsuits. The bureau ...