CFPB Proposes Rule to Ban Contract Clauses and Combat Debanking

The Consumer Financial Protection Bureau (CFPB) has proposed a new rule aimed at preventing financial companies from forcing consumers to choose between participating in the financial system and relinquishing their rights, including those protected by the Constitution. The rule seeks to ban contract clauses that undermine the rule of law, deplatform or suppress speech, and allow companies to unilaterally amend key terms or force customers to automatically plead guilty. CFPB Director Rohit Chopra emphasized that companies should not use fine print to deplatform or purge people from the economy. The proposal has been met with support from various quarters, including those advocating against 'debanking', a practice where individuals are denied financial services due to their political or religious views.