Washington, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) announced a final rule governing arbitration clauses in consumer financial contracts. While the rule does not ban the use of mandatory arbitration, it requires that victims have the option of entering into class action lawsuits and sets new requirements when companies use arbitration to address disputes. Joe Valenti, director of consumer finance at the Center for American Progress, released the following statement:
Victims of deceptive or exploitative business practices all too often find themselves locked out of the courthouse because of mandatory arbitration clauses hidden in the fine print. Today’s action from the CFPB will help restore consumers’ rights and provide greater accountability for companies in the financial marketplace.
The CFPB looks out for the American people and their financial interests, so it’s no surprise that Wall Street and big bank lobbyists have flooded the halls of Congress to urge members and senators to weaken the CFPB’s authority. Giving predatory actors a free pass is exactly what some in the financial industry would like to see, and it’s critical that any efforts to undermine the bureau are defeated.
For more information or to speak with an expert, contact Allison Preiss at firstname.lastname@example.org or 202.478.6331.