Clinton to Weigh In on Wells Fargo Issues
Saturday, October, 15, 2016
Democratic presidential nominee Hillary Clinton this week stated she will propose the curbing of forced arbitration in response to the Wells Fargo cases currently making news. She made her announcement in a stump speech on the campaign trail in Toledo, Ohio, also attacking the bank and using its recent scandal as an example of poor and shocking behavior by a corporation.
Clinton stated she believes Wells Fargo is “bullying” employees into committing fraud and then forcing those customers to use arbitration instead of filing lawsuits. The bank recently settled with regulators after being accused of secretly opening millions of customer accounts without their consent or knowledge, misusing personal information, and sticking customers with hidden fees. Customers could face years of credit difficulty and financial challenges in lieu of the scandal.
Clinton’s criticism extended to Wall Street and pointed out that nothing has changed since the financial crisis, pointing to forced arbitration as a sign of the problem. She introduced a proposal in her Toledo speech that would open up businesses to being sued by customers who were wronged.
As it stands, even though Wells Fargo committed fraud, customers have little recourse aside from arbitration to settle their own legal issues with the bank. Clinton claims she wants to change this and allow for legal action against the bank and other corporations who commit fraudulent actions or wrong customers in other ways. According to her campaign, the goal is to curb the prevalence of fine-print “forced arbitration" clauses in contracts and give customers more leeway in terms of how they can defend themselves against corporate corruption.