Lawmakers Comment on CFPB’s Arbitration Study
Lawmakers speak out about the Consumer Financial Protection Bureau’s study on the use of arbitration in consumer financial products and services.
U.S. Senator Sherrod Brown (Ohio): “Only when consumers are faced with a serious financial dispute do they realize that they are prohibited from filing individual and class action lawsuits, often depriving them of a fair settlement. The Consumer Financial Protection Bureau must protect consumer interests and implement a strong rule banning mandatory arbitration.” Read more.
U.S. Senator Al Franken (Minnesota): “Forced arbitration can put consumers at a huge disadvantage, often limiting their ability to have any meaningful legal recourse when they are wronged. This new report from the CFPB calls attention to just how much harm these type of agreements can do to consumers, and I look forward to seeing a strong rule issued by the Bureau in response.” Read more.
U.S. Representative Hank Johnson (Georgia): “Furthermore, this study underscores the importance of creating arbitration fairness in all consumer agreements. I strongly believe that the comprehensive solution to this problem is the Arbitration Fairness Act, which would eliminate forced arbitration clauses in employment, consumer, civil rights, and antitrust cases, and would allow consumers and workers to freely choose arbitration after a dispute occurs. This simple fix would allow a voluntary system of arbitration.” Read more.