A series of developments following the Wells Fargo scandal has now led to the introduction of legislation designed to bring financial justice to the millions of consumers affected by fees and fraudulent accounts they never authorized, nor opened.
On Dec. 1, Ohio U.S. Senator Sherrod Brown, introduced a bill that would grant Wells Fargo victims their own day in court—even if they signed contracts that included arbitration for legitimately-opened accounts with the bank.
Entitled the Justice for Victims of Fraud Act of 2016, the bill would work hand-in-hand with provisions of the Consumer Financial Protection Bureau’s proposed oversight rule. While CFPB’s rule would apply to credit contracts signed after the rule took effect, Brown’s legislation would apply only to cases of fraud like those affected by the Wells Fargo scandal that preceded the record $185 million CFPB fine.
A companion bill was also filed in the House of Representatives by California Congressman Brad Sherman.
“I want to thank Senate Banking Committee Ranking Member Sherrod Brown for working with me to introduce the Justice for Victims of Fraud Act of 2016. This bill will give defrauded Wells Fargo customers the opportunity for their day in court,” said Sherman. “If customers never authorized the opening of a phony credit card or checking account, there is no reason they should be bound by the arbitration agreement they were forced to sign when they set up their legitimate account.”
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