July 12, 2017

The Gecko Looks Cute Until It Bites Your Finger and There is No Court to Sue CFPB Giving A Way Out of Arbitration

A federal consumer watchdog agency has issued a new rule that will prevent credit card companies and banks from requiring customers to agree to settle disputes by arbitration rather than going to court.
Most people don't realize how important this is because they ussually don't have to deal with negative bank decissions but this also applies to insurance companies.
I had a car accident while insured by Geico. I thought I was in good hands because of their commercials and lower rates. I would have gladly paid $100 more for my policy and not face myself in a situation in which they arbitrarily made a decission in which they assigned 80% of fault to me.  This is after an SUV slammed into the driver's side of my car, totaling my vehicle and sending me to the hospial. This happened while I was stopped waiting for the vehicle to pass while I was making a left turn. That decission meant I will only collect 20% from the other driver's insurnce to replace my car. I could not understaand why they will not use the film of the accident from a store of where it happened and it showed the other car flying thru in a 25 MPH zone.  They also would not use the police diagrahm made at the time of the accident. They never use all the evidence that showed I was not at fault.  They said their deission was based on something I told the cop at the time of the accident. What ever that was? Then I told them I was going to take them to court, they simply said there is no court for me but arbitration. I know how arbitration works and is a waste of time unless you are willing to try the courts anyways. These so called arbitrators are not going to vote against the people paying their salary. This is just a little example to show you what rbitration is and everynone that deals with financial institutions whch includes insurance companies, lending companies, banks got screwed by congress when took the right of a americans to go to court. It is so unamerican but that tells you about the power of money. If you have a problem and you are on the right you will be on the wrongside of the table without. judgee or jury. It doesnt guarrantee you will win if you are on the right but you are at least given a clean shot to have your case heard by someone who is in no way connected to any industry.
The decission released Monday, the Consumer Financial Protection Bureau explained:
"Hundreds of millions of contracts for consumer financial products and services have included mandatory arbitration clauses. These clauses typically state that either the company or the consumer can require that disputes between them be resolved by privately appointed individuals (arbitrators) except for individual cases brought in small claims court. While these clauses can block any lawsuit, companies almost exclusively use them to block group lawsuits, which are also known as 'class action' lawsuits."
CFPB Director Richard Cordray said the current rules "make it nearly impossible for people to take companies to court when things go wrong." He said the new rules would "stop companies from sidestepping the courts."
The CFPB has a website and a video explaining the new rule.

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