Brad Sherman

Wells Fargo’s actions should persuade lawmakers to rein in forced arbitration

Wells Fargo’s actions should persuade lawmakers to rein in forced arbitration

When they open an account at Wells Fargo, consumers may miss the fine print stating that any disputes with the bank have to be resolved through arbitration. Not that Wells Fargo gives them a choice: If they want to open a savings account, they had to agree (with limited exceptions) not to take the bank to court. 

But what consumers couldn’t have anticipated is that Wells Fargo would use this agreement to insulate itself against class-action lawsuits when the bank fraudulently created entirely new accounts in their name without their knowledge or consent. That’s what the company has been doing...

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