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Congressional Resolution Blocks Arbitration

  • November 8, 2017
  • By: Greenpath Financial Wellness

A joint Congressional resolution awaiting President Donald Trump’s signature would unravel a rule blocking financial institutions from forcing customers into arbitration to resolve disputes rather than class action lawsuits.

Tuesday’s 51-50 party-line vote by Senate Republicans – Vice President Mike Pense broke the tie – comes in the wake of major breaches of consumer trust by financial institutions.

People have lost trust in financial systems, said Kristen Holt, the president and CEO of GreenPath Financial Wellness.

“We want everyone to have all avenues open to them if they are harmed, and while most people won’t be directly impacted by this vote, it is a loss of protection for Americans,” Holt told Benzinga.

“At GreenPath, we believe that everyone deserves financial products and services that are respectful, dignified experiences, and that they should have protection from being harmed by the system.”

GreenPath, a Farmington Hills, Michigan-based nonprofit, offers services such as free debt counseling nationwide.

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