UPDATE: Texas Watch testified before federal regulators about the dangers forced arbitration poses to consumers. Our Director of Legislative Affairs Ware Wendell told Richard Cordray, the director of the Consumer Financial Protection Bureau (CFPB), that forced arbitration “is flawed in many respects. It precludes class actions, is largely unappealable, has limited discovery, is subject to repeat player bias, is more costly for consumers, and is conducted in secret.”
He added: “We already have a dispute resolution system that we have all paid for. It is open and accountable, with well-established rules of procedure and evidence. The law must be applied strictly. And when errors are made, they can be corrected. It is called our court system.” Check out his full written testimony.
The CFPB has been studying forced arbitration and its impact on consumers and businesses. The agency released its preliminary findings during the Dallas field hearing. The next step is for the CFPB to complete its study and develop rules regarding its use. Make sure your voice is heard by taking action now.
ORIGINAL POST: The federal Consumer Financial Protection Bureau is meeting in Dallas this week for a field hearing on a proposal to ban forced arbitration in consumer financial contracts like credit cards and car loans.
Forced arbitration clauses are everywhere. If you have a dispute with a bank, you are forced into a closed, costly and tilted process without any appeal or public record. Not only is forced arbitration biased against consumers, but it also costs consumers more and it is conducted in secret.
We’ll be there to speak on behalf of Texans who have been subjected to this unfair process. And, we encourage you to be there too. If you have an experience with forced arbitration you’d like to share, here are the details for the hearing. It is important to RSVP.
Also, take action now to let the agency know you support a ban on forced arbitration.