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
Equifax doxed virtually every adult in America as well as millions of people in other countries like the UK and Canada. The breach was caused by an acquisition spree in which the company bought smaller competitors faster than it could absorb them, followed by negligence in both monitoring and responses to early warnings. Execs who […]
The next version of Chrome will patch a bug that lets websites detect users who are in incognito mode by by probing the Filesystem API; they've also pledged to seek out and block any other vulnerabilities that will let servers detect users in incognito mode.
The Googler Uprising was a string of employee actions within Google over a series of issues related to ethics and business practices, starting with the company's AI project for US military drones, then its secretive work on a censored/surveilling search tool for use in China; then the $80m payout to Android founder Andy Rubin after […]
Vape technology has been around long enough that vapers are starting to get picky about their gear. Luckily, so are we. From disposable models to cutting-edge touchscreen atomizers, there’s a vaporizer in this roundup to suit every taste. Hera 2 – World’s Most Advanced Dual-Use Vaporizer Choose between dry herb or oil extraction modes – […]
With enough practice and commitment, anyone can be a visual artist. But without the right instruction, that time spent honing your skills could seem like an eternity. If you really want to see where your talent can take you, you need sound fundamentals – and no matter what discipline or genre you lean toward, the […]
Theoretically, there’s never been an easier time for marketers. The ubiquity of social media means a good word – or a good brand – can spread like wildfire with very little effort. But as limitless as the internet is, there’s a lot of competition and noise to contend with. And the vast graveyard of failed […]