Washington, D.C., July 10, 2017 – In response to today’s announcement that the Consumer Financial Protection Bureau issued a final rule restricting the use of forced arbitration in consumer financial contracts, AFJ President Nan Aron issued the following statement:
“AFJ has long supported this rule and we are encouraged by this latest step toward making it a reality. Right now, consumers signing up for financial services are often subject to forced arbitration agreements. These ‘ripoff clauses’ can include language prohibiting consumers from joining together as a class to pursue a claim in court if they are wronged by a bad actor in the banking or lending industry. The CFPB rule would help right this wrong by restoring the right of financial products consumers to pursue justice in court if they are harmed.”
In 2016, Alliance for Justice submitted written comments on the proposed rule, urging CFPB to adopt it. The comments are available here: http://www.afj.org/wp-content/uploads/2016/08/Alliance-for-Justice-CFPB-Class-Action-Waiver-Ban-Comment-Aug-2016.pdf .
AFJ also joined with 280 other consumer, civil rights, labor, community and nonprofit organizations in signing a letter to the CFPB urging it to adopt the rule. The letter can be found here: http://ourfinancialsecurity.org/2016/08/letter-regulators-afr-280-groups-strongly-support-cfpb-action-forced-arbitration/