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Charles Schwab Drops Forced-Arbitration Clause From Contracts

Thursday, May 16, 2013 - 6:40 PM
From Consumerist:
After AT&T somehow convinced the U.S. Supreme Court that a couple of sentences buried toward the end of a contract that maybe .05% of customers ever think about reading was all that was needed to preempt class-action lawsuits, many large companies have rushed to pack their user agreements and licenses with clauses that force customers into arbitration. But, stuck in a battle with an industry regulator, the folks at Charles Schwab have decided to go another way, announcing that they have gotten rid of their arbitration clause… for now.

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The article states that the clause was added against the advice of FINRA (Financial Industry Regulatory Authority), a private regulatory agency.  A petition was initiated to rescind it, and within three weeks the company agreed to do so. 

I was surprised and disappointed that this broker needed to be reminded that just because you can doesn't mean you should.
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