Cyrus Dugger

More Acknowledgement of the Anti-Consumer Nature of Mandatory Binding Arbitration Clauses

More acknowledgement of the anti-consumer nature of mandatory binding arbitration clauses.

More faces of Wells Fargo
BY BONNIE HARRIS
REGISTER STAFF WRITER
January 14, 2007

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LENDING

Wells Fargo has implemented new lending policies after facing criticism that it has harmed customers with poor credit records.

George Brown, a vice president at the Center for Responsible Lending, said Wells Fargo’s changes could make it “a national leader in the fight against predatory lending.”

Wells Fargo has been criticized by consumer rights groups, including Brown’s, for taking advantage of consumers with poor credit records by charging them higher rates than necessary or tacking on unneeded fees.

The company has denied any pattern of abuse. But it has capped origination fees, shortened the period of time when they can penalize a customer for repaying a loan early and halted the practice of forcing consumers to take disputes to mandatory arbitration, which critics said fell in favor of the lender. (link)

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