A report to Congress from the Consumer Financial Protection Bureau indicates that arbitration agreements, which are usually buried in the fine print of standard form contracts, disadvantage consumers who try to resolve their disputes with financial service providers. The report found that 75% of surveyed consumers didn’t know if they were subject to an arbitration clause in their financial agreements, and fewer than 7% knew the clauses restricted their ability to wage a lawsuit against a financial provider. Public Citizen and the Alliance for Justice urged the agency to ban the use of forced arbitration clauses in consumer financial products. Consumers Union said arbitration clauses erode consumer rights to hold companies accountable for fraud and other violations.
News organizations across the country turn to AFJ for expert analysis