Report: Dispute Resolutions Are Restrictive at Big Banks

After examining the dispute-resolution clauses of the 92 of the biggest financial institutions, the Pew Safe Checking in the Electronic Age Project found that 64 percent of these institutions set restrictions on consumers’ legal options in the event of a problem.

“A checking account is the most widely used financial product in the United States, and many bank customers become bound by a mandatory arbitration agreement when they open their account,” said Susan Weinstock, director the Pew Safe Checking in the Electronic Age Project, in prepared remarks. “We found that most consumers were not aware that their right to go to court is often limited if they have a dispute with their bank.”

Pew urges the Consumer Financial Protection Bureau to review these banks’ arbitration agreements to see if they prevent consumers from obtaining relief.