New consumer rule helps with class actions

WASHINGTON, D.C. » The Consumer Financial Protection Bureau may be under attack from Republicans, but if it’s going out, it’ll be like a lion, not a lamb.

In issuing a new rule, the watchdog agency just took away a powerful tool that financial institutions used to avoid being sued by groups of consumers.

Whenever you obtain a financial product, such as a credit card, you get a written legal contract. In it, consumers often unknowingly agree to mandatory arbitration to settle disputes. Tens of millions of people use financial products or services that are subject to pre-dispute arbitration clauses, according to the CFPB.

Under the new rule, companies can still include arbitration clauses in contracts but they can’t stop consumers from being part of a class-action lawsuit. This is a game-changer, folks.

Mandatory arbitration clauses, according to CFPB Director Richard Cordray, have allowed companies to “avoid accountability by blocking group lawsuits and forcing people to go it alone or give up.”

This rule came about because of the 2010 Dodd-Frank financial reform package, which the Trump administration and Republicans have been trying to dismantle. The legislation required the CFPB to study the use of arbitration agreements and report back to Congress. The rule is a result of that report.

I see it as bittersweet. The rule change is a win, for sure, but not necessarily for aggrieved individuals who may dream of a big settlement in a court case to punish wrongdoing.

In class-action cases, lawyers can walk away with millions. Consumers may get some money, but it’s seldom a huge payday individually.

Recently, I was reading a message board about a class-action suit filed against AT&T in 2010. Accused of mistakenly collecting taxes from customers for certain state and local taxes for Internet access on their smartphone, the company ended up settling, agreeing to help people get a refund for the overage.

One customer complained about receiving a check for one penny. “Guess they couldn’t find a way to send less.”

“A whopping 3 cents,” another person wrote. I betcha those attorneys made out like bandits on this settlement.”

People in the know like Han and Chewie, they knew of this place,” he said, referencing beloved franchise characters Han Solo and

Chewbacca.

Beatty didn’t rule out the possibility of Galaxy’s Edge appearing in an upcoming “Star Wars” film, though he didn’t reveal any current plans. Lucasfilm’s developers and writers worked closely with Disney’s Imagineers on the expansion.

During his presentation, Chapek also announced many characters from the films will be featured in Galaxy’s Edge, including BB-8, Chewbacca and Kylo Ren. But it was the droid Rex that received the biggest applause from the audience. Rex may serve as a DJ at a cantina in

Galaxy’s Edge, Chapek said.

The chairman also announced a Star Warsthemed luxury resort at Walt Disney World, which he says is “100% immersive.” Chapek did not announce an opening date or if construction is ongoing.

The Star Wars-themed

lands were first announced at the 2015 expo. During the 2015 expo, Disney announced the themed lands among a slew of “Star Wars” park expansions, including the interactive Star Wars Launch Bay and a seasonal event, Season of the Force. They also updated the Star

Tours ride, Disney’s first Star Wars-themed ride installed in 1987.

At 14 acres, Galaxy’s Edge is Disney Park’s largest single-themed land expansion.

“It’s got to be big. Go big or go home with ‘Star Wars,’” Beatty said.