Posts Tagged ‘FINRA’
The Consumer Corner - Thursday, May 2, 2013 15:22 - 0 Comments
Charles Schwab & Co., Inc. – the well-known investment advisor holding more than $2 trillion in assets for millions of investors – is trying in a “sneaky manner” to eviscerate its customers’ rights. In the fine print of Schwab’s terms of service, there is a forced arbitration clause and a ban on consumers joining together in class actions – a serious blow for small investors. Corporations are increasingly using these terms to deny consumers their constitutional rights. The forced arbitration clause means that if you ever have a dispute with the company, you can’t take your dispute to a public court. Instead, you have to go to a private, secretive tribunal chosen by Charles Schwab.
As we have reported in previous issues, class-action bans prevent you from banding together with other customers to hold firms accountable for deceptive, fraudulent and illegal practices. In the event Schwab misled investors and caused them to lose their hard-earned savings, only those with the time and resources to seek justice individually – in costly and secret arbitration that is stacked against them – stand a chance to recover their losses. Meanwhile, Schwab can escape real accountability for its wrongdoing, if that happened to be the case. Schwab’s decision to include arbitration is particularly egregious because it is the first of the brokerage firms to prohibit investors from participating in class actions. Now that Schwab has done it, others will likely follow.
The Financial Industry Regulatory Authority (FINRA), the banking industry self-regulatory body, already has rules to prevent brokerage firms like Schwab from banning class actions. By inserting a class-action ban into its terms, Schwab violated those rules. FINRA filed a complaint against Schwab to order it to remove the class-action ban. That’s very significant. Even a corporate self-regulatory body that’s packed with bankers appears to recognize that it’s wrong to deny an individual’s constitutional rights.
Unfortunately, FINRA lost the dispute against Schwab, but the fight is far from over. An appeal is pending on the case. But, the Securities and Exchange Commission (SEC) could step in and require Schwab and other brokerage firms to drop the predatory language from their terms. In the meantime, Public Citizen continues its work for U.S. consumers. They should be commended for leading this fight against Schwab in the effort to restore its customers’ rights.
Source: Public Citizen
- JPMorgan And Assurant Settle Force-Placed Insurance Claims For $300 Million
- Toyota Sudden Unintended Acceleration Lawsuit Ends In Landmark Verdict
- Favorite Bible Verses
- Beasley Allen Legal Conference & Expo Set For November 21-22
- An Update on the BP Business Economic Loss Claims
- Parting Words
- Some Monthly Reminders
- Closing Observations
- Flynn Mozingo Receives Pro Bono Award
- Alabama Veteran Awarded Congressional Gold Medal
- Beasley Allen Provides Help For The Holidays
- More Than 2,000 Lawyers Pre-Registered For Seventh Annual Legal Conference In Montgomery
- Little Willy’s Recalls Hooded Sweatshirts Due To Strangulation Hazard
- American Boy And Girl Recalls Infant Sandals Due To Choking Hazard
- Children’s Pajamas Recalled By Babycottons
- L.L. Bean Girl’s Pajamas Recalled
- Look forward to the next update....
- I experience some of the same problems with Flagstar, how do we get a class acti...
- Ford 2005 F-150 Regulator Failure - My regulator failed on the passenger side fr...
- I LOST BOTH OF MY LITTLE DOGS, ONLY THING IVE' CHANGED WAS BUYING SOME JERKY TRE...
- JUST RECEIVED A NEW POLOCY, THE OTHER'S ALSO INCLUDED WERE OVER 1900 PER YEAR, "...
- I HAVE EMAILED EVERYONE GOVERNMENTWIE FOR HELP. SOME RESPOND. FIRST TIME AND CU...
- my name above, my address is 100 Maywood Avenue, Sinking Spring, PA 19608. i W...
- My ex wife had my son 4 year on Pulmicort for about 4-5 months I mention to her ...