Big Lie No. 2: Class actions only benefit the attorneys.
The CFPB studied 419 consumer financial class actions and found $2.7 billion in relief for consumers, with only 18 percent of that going to attorneys. That is, $2.2 billion went to consumers. The math I was taught says that $2.2 billion is a pretty big benefit and is a lot more than the attorneys got.
Lawyers who represent consumers work for years without pay, fighting against mega-banks, and when they win, they are paid for doing their jobs. I don’t hear lobbyists complaining about the money Wall Street lawyers make fighting against these cases and dragging them out — even in arbitration (link).
What's more, I bet the average person would rather see the consumer lawyers get paid for holding banks accountable than let a bank illegally take $100 each from a million people.
A few anecdotes about class actions when held up against the CFPB’s extensive data don’t justify taking away everyone’s day in court. The CFPB's extensive data about the benefit of class actions for consumers also refute any anecdotes about supposedly frivolous lawsuits.
Should we make all industry debt-buyers (a form of debt collector you never want to meet) give up the right to file lawsuits because some (many) sue the wrong person, seek the wrong amount or file suits after the statute of limitations has passed?