Consumers Union statement on CFPB’s new rule limiting forced arbitration by banks, credit card companies and other financial firms

Experts

Senior Policy Counsel
Communications Director

July 10, 2017

WASHINGTON, D.C. – The Consumer Financial Protection Bureau announced a new rule today prohibiting banks, credit card companies and other financial firms from forcing consumers into mandatory arbitration to resolve disputes involving widespread wrongdoing.  George Slover, senior policy counsel for Consumers Union, the policy and mobilization arm of Consumer Reports, issued the following statement:

“We think the Bureau has taken a measured approach to arbitration, based on thorough review and consideration. This rule targets one of the worst problems with arbitration, when it shields financial companies from accountability for widespread wrongdoing.  Forced arbitration is heavily weighted against the consumer.  This rule takes an important step to restore some basic rights that consumers need and deserve, and to restore some accountability for financial companies.”

Contact:  David Butler, dbutler@consumer.org, 202-462-6262