Class-Action Lawsuits Still a Reality for U.S. Financial Firms with Bad Press

St Louis Post-Dispatch (MO), October 26, 2017 | Go to article overview

Class-Action Lawsuits Still a Reality for U.S. Financial Firms with Bad Press


NEW YORK * Not every financial firm will be able to reap the benefit of Wall Street's victory in dismantling the threat of class-action lawsuits.

The U.S. Senate killed a rule late on Tuesday that allowed consumers to band together to sue banks and credit card companies even when the small print of their contracts forced them into closed-door arbitration with their grievances.

It was a huge win for banks, who feared a flood of costly lawsuits. But for financial firms already in the spotlight for poor treatment of customers, the bad publicity may make it difficult for them to avoid court.

Credit-scoring agency Equifax Inc. said on Wednesday it would still allow customers to sue it over its massive cyberbreach, highlighting the tricky path some financial firms must navigate.

"Every company is not now sitting up and saying, 'Let's take advantage of this.' It's more complicated than that. Each does its own cost-benefit analysis," said Christine Scheuneman, senior partner at Pillsbury Winthrop Shaw Pittman.

Equifax initially turned to arbitration clauses in the face of its cyberhack but public pressure and threats from state attorneys general forced it to drop the requirement for 145.5 million consumers affected by the breach.

Politicians also slammed Wells Fargo & Co. for wanting to settle customer complaints over abusive sales practices through arbitration, and Chief Executive Tim Sloan told lawmakers this month that the company would not stop them suing.

But the bank is fighting some customers in federal court in Utah over their attempts to take legal action against it.

"I don't think that (vote) is going to change our case at all," said Steven Christensen, an attorney at Christensen Young & Associates who represents the plaintiffs in the Utah case. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Class-Action Lawsuits Still a Reality for U.S. Financial Firms with Bad Press
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.