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U.S. lawmakers probing Wells Fargo scandal blast arbitration pacts

Wells Fargo & Co customers aiming to sue the bank over bogus accounts opened in their names may be in for an unpleasant surprise: the fine print requires them to take their claims to an arbitrator instead of a court.

Mandating arbitration when signing up for financial products has become standard practice after a 2011 U.S. Supreme Court decision validated the practice.

Still, the tide may be turning, said Joseph Peiffer, a New Orleans lawyer who has represented investors and others in class action lawsuits.

“Class actions dissuade companies from ripping people off a thousand dollars here and a thousand dollars there,” Peiffer said.

Read full article on Reuters…