Published: May 2016

Keep the CFPB strong on forced arbitration

Here we go again—those who have opposed increasing consumer protections and the creation of the Consumer Financial Protection Bureau (CFPB), are at it once more. Coalition advocates are urging Appropriations Committee members to reject any proposals that might weaken or limit the Consumer Financial Protection Bureau’s (CFPB) ability to take action against companies who have used forced arbitration clauses in their consumer contracts. After the well-documented abuses that led up to the 2008 financial crisis, Congress included in the Dodd-Frank Act a provision that specifically authorized the Consumer Financial Protection Bureau (CFPB) to restore consumers’ legal rights by regulating, curbing, or outright prohibiting forced arbitration clauses in consumer contracts.

Consumer Action joined coalition advocates in urging members of the House and Senate Appropriations Committees to reject any proposal intended to weaken the Consumer Financial Protection Bureau's (CFPB) authority to crack down on companies that implement forced arbitration clauses in consumer contracts. Restricting the CFPB in this regard would be a huge step backwards for the public interest and a tremendous gift to the worst actors on Wall Street and in the financial sector.

The financial crisis of 2008–and continuing examples of financial sector malfeasance and irresponsibility since then–have made the need for more vigorous regulation painfully clear. Instead of working to eliminate consumer, investor, and systemic protections, the committees should focus on completing the job of strengthening them. This would increase the safety and stability of our economy and make financial markets work better for the public. It is also consistent with the views of the American public. Polls show that an overwhelming majority of the public, on a bipartisan basis, wants more accountability and oversight for Wall Street, not less.

Lead Organization

American's for Financial Reform (AFR)

Other Organizations

Alliance for Justice | American Association for Justice | American Association of State Colleges and Universities | Americans for Financial Reform | Center for Global Policy Solutions | Center for Justice & Democracy | Center for Popular Democracy Action | Committee to Support the Antitrust Laws | Communications Workers of America | Consumer Action | Consumer Federal of America | Consumers for Auto Reliability and Safety | Consumers Union | Consumer Voice | Homeowners Against Deficient Dwellings | Jobs With Justice | League of United Latin American Citizens | Main Street Alliance | NAACP | National Association for College Admission Counseling | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low income clients) | National Consumers League | National Fair Housing Alliance | Public Citizen | Public Justice Center | Veterans Education Success | Women's Production Network, Inc. | Woodstock Institute | Workplace Fairness | United Activism Media LLC | United Policyholders | U.S. PIRG | Young Invincibles | 9to5, National Association of Working Women

More Information

For more information, please visit AFR's website.

Download PDF

Keep the CFPB strong on forced arbitration   (CFPBArbRuleLetter.pdf)

 
 

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