Senator Bill Dodd (D-Napa) and state Treasurer John Chiang discuss Senate Bill 33, which helps ensure victims of bank fraud can have their day in court and get compensated for their damage. The bill, authored by Senator Dodd and co-sponsored by Treasurer Chiang, was introduced following the recent Wells Fargo scandal where millions of fake accounts were fraudulently opened without consent, using consumer’s personal information from existing accounts.
Had SB 33 been in place, Wells Fargo’s multiyear campaign of deceit could have become public and prevented from spreading. Dodd’s bill would help victims by eliminating the use of forced arbitration clauses in contracts that were fraudulently created by financial institutions. Such contracts prevent consumers from having their day in court to recover damages. At this press conference, Richard Holober with the Consumer Federation of California and Brian Kabateck with the Consumer Attorneys of California also share the importance of this legislation.