State AGs to CFPB: We Need a Rule on Forced Arbitration
“Mandatory pre-dispute arbitration is procedurally unfair to consumers and jeopardizes one of the fundamental rights of Americans; the right to be heard and seek judicial redress for our claims,” said a Nov. 19, 2014 letter from 16 state attorneys general to the Consumer Financial Protection Bureau (CFPB).
The state AGs of Delaware, Kentucky, Massachusetts, California, Illinois, Oregon, Washington, New York, New Mexico, Maine, Iowa, Rhode Island, Vermont, Connecticut, Hawaii and Maryland came together to ask the CFPB to use its statutory powers to protect the public interest and restrict the use of forced arbitration clauses in consumer contracts under the agency’s jurisdiction.
“The Bureau has a unique opportunity to do something in the important area of consumer financial products or services,” said the AGs’ letter addressed to CFPB Director Richard Cordray, “the time is ripe to do so.”