Even though disgraced Wells Fargo CEO John Stumpf has left the building, his most outrageous legal theories live on: on Wednesday, the company filed a motion in a federal court in Utah seeking dismissal of a class action suit by the customers it defrauded -- the bank argues that since customers sign a binding arbitration "agreement" when they open new accounts, that the customers whose signatures were forged on fraudulent new accounts should be subject to this agreement and denied a day in court.
This is the same argument that Stumpf made during his disastrous performance in front of a blazing Elizabeth Warren -- that Wells's poor customers should be subjected to agreements they never made, because Wells stole their identities and "agreed" on their behalf.
Mandatory arbitration rules inserted into account-opening agreements prohibit customers from joining class actions or suing Wells Fargo. Instead, the agreements require individual, closed-door arbitration.
Mandating arbitration when signing up for financial products has become standard practice after a 2011 U.S. Supreme Court decision validated the practice. But customer advocates say it improperly denies customers the legal protections of court proceedings, such as the right to appeal, and helps to conceal corporate misconduct from the public and regulators because documents and hearings are not made public.
Customers trying to recover small sums of money are also unlikely to find lawyers to represent them in arbitration, critics say, and the cases do not set a legal precedent to help other affected individuals.
Wells Fargo asks U.S. court to dismiss account scandal lawsuit
Rolls Royce just arranged for a “deferred prosecution” with UK prosecutors over revelations that it had committed jailable offenses by bribing overseas officials in order to secure their business; under this arrangement, prosecutors have allowed Rolls Royce to pay to have the prosecution halted and to have their executives immunized from criminal repercussions for their […]
The “nonpology” is a corporate standard: a company does something terrible, and then it tells you it’s sorry that you found its behaviour upsetting. But HP’s October 2016 public statement on its secret, aftermarket attack on its customers’ property has made important advances in the field of nopologyology.
In a new paper in Progress, Oxford economist Vuk Vukovic argues that the key to re-election in local politics is to be just corrupt enough: giving lucrative contracts and other benefits to special interests who’ll fund your next campaign, but not so much that the people refuse to vote for you.
Whether I’m trying to relieve some stress at work or entertain myself on the metro, Space Putty is there. You can bring this magical goo home and try it for yourself for just $9.99Like Silly Putty of yesteryear, this viscoelastic substance can be molded into different shapes and stretched around in your hands. Use it […]
You know as well as I that writing complex, long-long form text requires significant organization. You’re probably also well aware that Word just isn’t up to the task. That’s why I’m a huge fan of Scrivener, the software suite used by best-selling authors and technical writers alike.Scrivener is much more than another digital typewriter. With a […]
Looking to upgrade your weekend? Here are three randomly awesome products on my mind this week.#3 FRESHeBUDS Pro Magnetic Bluetooth EarbudsAs more and more phones and gadgets switch to Bluetooth-only compatibility, you’ll need to get Bluetooth headphones like the rest of us. I’ve been super impressed with these affordable magnetic headphones. Pull the magnetic earbuds apart to auto-connect […]