Nobody should have to sacrifice their rights in order to save for retirement.
On Tuesday, Public Citizen launched its “Stand Up to Chuck” campaign calling on Charles Schwab & Co., Inc., a well-known investment advisor holding more than $2 trillion in assets for millions of investors, to drop the class-action ban and forced arbitration clause from its terms.
On Twitter, Schwab responded:
The link that @CharlesSchwab shared was to a boilerplate statement on how it’s legal for the corporation to ban class actions because of the Supreme Court’s horrendous ruling (almost exactly two years ago) in AT&T Mobility v. Concepcion.
The statement also references Schwab’s dispute with the Financial Industry Regulatory Authority (FINRA). FINRA, a banking industry self-regulatory body, has rules to prevent brokerage firms like Schwab from banning class actions. By inserting a class-action ban into its terms, Schwab violated those rules.