Published: November 2023

Call for a CFPB rulemaking on forced arbitration

More than a hundred organizations signed on to a letter to CFPB Director Rohit Chopra supporting a recently submitted petition for rulemaking to require meaningful consumer consent to arbitration.

Consumer Action was one of more than a hundred organizations to sign on to a letter expressing strong support for a recent petition asking the Consumer Financial Protection Bureau (CFPB) to issue a rulemaking to address the trap posed by forced arbitration clauses. Forced arbitration clauses included in the take-it-or-leave-it fine print of financial products and services continue to undermine many of the consumer protection laws and regulations the Bureau is working hard to enforce. Forced arbitration is systematically biased against consumers. In such an unfair playing field, with no transparency and no ability to appeal decisions, financial services providers overwhelmingly prevail against consumers. Consumers must be given a meaningful opportunity to choose, after the harm has occurred, how to proceed when they have been harmed or defrauded by a financial institution, whether through arbitration or through the public courts.

Lead Organization

American Association for Justice

More Information

Read the letter here.

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