Every investor should know about pump and dump and churning. While their tactics and actions are different, they are both types of investment fraud that can wreak havoc on your investment goals. Their dynamic names to describe fraudulent tactics are quite apt.
When a consumer signs a contract that includes a pre-dispute arbitration clause, they forfeit their legal right to file an individual or class-action lawsuit against the other party. These clauses require consumers to let arbitrators, rather than judges or juries, settle disputes that range from financial fraud to wrongful death. However, federal authorities continue to question the fairness of mandatory arbitration, and a new report reveals its effect on consumers who use financial services.