US consumer protection agency drops rule banning fine print that blocks lawsuits

The US Consumer Financial Protection Bureau has withdrawn a proposed rule that would have banned certain terms in consumer financial agreements. This means banks and other financial companies can continue to use contract clauses that prevent customers from suing them or joining class-action lawsuits.

For years, financial companies have used fine print to limit their liability. This often means individual customers cannot sue over small damages, even if those damages affect millions of people. The proposed rule would have made it easier for consumers to challenge unfair practices, but now that option is off the table.