Schwab Drops Anti-Investor Provision
Brokerage firm, Charles Schwab, announced on April 24th that as part of a settlement with the Financial Industry Regulatory Authority, Inc. (Finra), Charles Schwab would drop a provision in its consumer agreement that eliminated customers' rights.
We are encouraged by Charles Schwab's decision to remove a controversial provision from its consumer agreement that eliminated the rights of investors to join together to seek accountability in court. Charles Schwab's move signals that corporations are beginning to yield to the groundswell of public outrage at their anti-consumer policies.
This is a victory for investors, but it is only one step in the right direction. Charles Schwab and many other brokerage firms still use forced arbitration clauses in the fine print to eliminate their customers' rights to bring individual cases in court. Arbitration should never be forced - if it is good for investors, consumers, and employees, let them make the choice.