May 6, 2012

Coming Next: Mortgages Barring Class Actions

" ...A year later, the lawsuit hit a brick wall. In April 2011, the Supreme Court ruled in AT&T Mobility v. Concepcion that corporations could write consumer contracts that blocked class-action lawsuits. To do so, the corporations need only draft a contract that a.) requires unhappy customers to settle disputes through arbitration, and b.) prohibits unhappy customers from arbitrating as a collective."  A Rising Tide Against Class-Action Suits, By DAVID SEGAL, Published: May 5, 2012

I have been advocating the use of class action suits to demand retribution from the banking, mortgage, rating agencies, real estate and financial services industries for their contributions to the sub-prime melt down. Those that caused the problem should pay for the problem.

This Supreme Court has lost its sense of reality. I am sure part of their logic to block class action suits was if the consumer does not like the contract one service provider uses, the consumer can go to another provider. The problem is many of our markets today are controlled by oligopolies who can easily conspire against the consumer. The banking industry is controlled by five lending institutions. Does the Supreme Court really believe these firms do not talk to each other? More: http://goo.gl/fEFvi

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