"There is no moral or economic reason to deny people who have been
harmed the right to sue in court. But Republicans keep trying to do so."
This quote by our managing partner, Attorney Robert Sachs, Jr., shows
our passion for protecting citizens’ rights to sue financial institutions.
However, not everyone shares our convictions. The Trump administration
is trying to shut down a rule that would allow people to join together
to file class action lawsuits against banks and other financial institutions.
If the Republicans succeed in blocking this rule, thousands of victims
of fraud and financial abuse would have to settle in arbitration, which
almost always benefits the banks.
Here’s What You Need to Know
The Consumer Financial Protection Bureau is trying to pass a rule that
will allow citizens to file class action lawsuits against financial institutions.
Without this rule, banks can force citizens to settle complaints in arbitration,
which often works in the interests of the banks. Bringing individual lawsuits
against financial corporations is often too costly, so the best way to
hold banks responsible is through class action lawsuits.
Keith Noreika, a bank lawyer appointed by Trump, tried to stall the rule
by saying more time was needed to determine if the rule threatened the
stability of the nation’s banking system. The Consumer Financial
Bureau refused. The facts showed that the rule would cost around $1 billion
a year for the banking system, which makes more than $171 billion per
year. Thus, the rule would not destabilize the nation’s financial
institutions. It would only keep them more accountable.
The Situation in the Healthcare Field Is the Same
The rule regarding financial institutions is similar to an Obama-era rule
concerning nursing home lawsuits. Under this rule, nursing homes cannot
force residents to settle disputes in arbitration rather than lawsuits.
In effect, it gives residents the right to sue nursing homes for abuse
and other violations of the law.
Now, however, the Centers for Medicare and Medicaid Services want to reverse
this rule. This means residents would have to settle disputes in arbitration
instead of litigation, which would almost always benefit the nursing homes.
At Shrager & Sachs, we believe this is unacceptable. Residents
should have the right to sue nursing homes and hold them responsible for
their healthcare and business practices.
Shrager & Sachs Fights for Your Rights to Sue
If the Republicans succeed in repealing the rule concerning financial institutions,
millions of people will be left vulnerable to fraud and unfair banking
practices. In a similar vein, if the Centers for Medicare and Medicaid
Services succeeds at reversing the Obama-era nursing home rule, millions
of patients will be unable to sue for mistreatment and other unlawful
practices. At Shrager & Sachs, we are passionate about keeping
large corporations and healthcare providers accountable. Our Philadelphia
personal injury attorneys know the importance of seeking compensation
through class action lawsuits, and we have helped hundreds of clients
achieve justice. We believe people have the right to band together to
keep large corporations in check.
Contact our firm
today to learn how we tenaciously uphold out clients’ rights in court.