Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

'Normal' is killing us.

Donald Trump is out of the White House. COVID-19 is fading, at least in wealthier nations. The world, they say, is returning to “normal.” That’s the narrative that the corporate media is selling. But there’s a problem: “normal” is destroying our planet, threatening our democracies, concentrating massive wealth in a tiny elite, and leaving billions of people without access to life-saving vaccines amid a deadly pandemic. Here at Common Dreams, we refuse to accept any of this as “normal.” Common Dreams just launched our Mid-Year Campaign to make sure we have the funding we need to keep the progressive, independent journalism of Common Dreams alive. Whatever you can afford—no amount is too large or too small—please donate today to support our nonprofit, people-powered journalism and help us meet our goal.

Please select a donation method:

For Immediate Release

Press Release

Consumers Fare Better Under Class Actions Than Arbitration

WASHINGTON -

Many financial institutions use forced arbitration clauses in their contracts to block consumers with disputes from banding together in court, instead requiring each consumer to argue their case separately in private arbitration proceedings. Recently, members of Congress introduced legislation to repeal a new rule from the Consumer Financial Protection Bureau that restores consumers’ ability to join together in class action lawsuits against financial institutions.

Opponents of the rule have suggested that the CFPB’s own findings show consumers on average receive greater relief in arbitration than class action lawsuits. In a new fact sheet, EPI Policy Director Heidi Shierholz explains that this is enormously misleading. While the average consumer who wins a claim in arbitration recovers $5,389, consumers win only 9 percent of disputes. Overall, the average consumer who enters arbitration with a bank or lender is ordered to pay $7,725. Furthermore, Shierholz points out, evidence shows that allowing consumers to join together in court does not increase consumer costs or decrease available credit.

“The numbers couldn’t be more clear—class actions return hundreds of millions of dollars to consumers, while forced arbitration only pays off for banks and lenders,” said Shierholz. “Congress should side with the American people, not big banks, and vote down this capricious attack on consumer freedom.”

###

Economic Policy Institute logo

EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans.

SCOTUS Solidifies Students' Free Speech Protections, Upholding Right to Say 'F**k Cheer'

"The message from this ruling is clear—free speech is for everyone, and that includes public school students."

Brett Wilkins, staff writer ·


Right-Wing SCOTUS Majority Rules Union Organizing on Farms Violates Landowners' Rights

The Supreme Court "fails to balance a farmer's property rights with a farm worker's human rights," said United Farm Workers of America.

Kenny Stancil, staff writer ·


Lawmakers Tell Biden US Has 'Moral Obligation' to Ban Landmines

"If the United States takes these steps it will be welcomed around the world."

Andrea Germanos, staff writer ·


Report on ICE Reveals 'Cruelty and Coercion' Against Hunger Strikers

The U.S. agency's systemic response of "coercion and violence," said an ACLU attorney, "speaks to the inherently abusive and inhumane nature of immigration detention."

Jessica Corbett, staff writer ·


Proposed New Oil Field in Scotland Ahead of Glasgow Climate Talks Decried as 'Obscenity'

"If ministers are serious about facing up to the climate crisis they must end their support for climate wrecking fossil fuels at home and abroad."

Julia Conley, staff writer ·