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. Read more
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.