Keep Wall Street Honest: End Forced Arbitration
Think consumers should be able to sue corporations that have wronged them? Today’s the day to speak up.
Buried in many contracts you’ve signed -- for loans, credit cards, and even Pokemon Go -- you’ll find a “ripoff clause” in the very, very, very fine print. These clauses stipulate that consumers cannot band together in a class action suit to protest unfair fees, seek damages due to dangerous products, or otherwise protest wrongdoing. As pointed out in the New York Times, “Without the ability to pool resources, most people abandon their claims and never make it to arbitration.”
When companies are allowed to ban class action suits and force independent arbitration, they have little impetus to behave responsibly. If they are unlikely to be held accountable when they break the law, why not cut corners and charge bogus fees to drive up profits?
Let the Consumer Financial Protection Bureau (CFPB) know that you stand firmly against forced arbitration “ripoff” clauses:
Consumers already face a stacked deck when they try to hold large corporations accountable for harms – but forced arbitration clauses in consumer financial contracts make it nearly impossible to beat the odds. I support the CFPB’s proposed rule to restore consumers’ right to join together and take companies to court when they break the law.
Barring consumers from joining class actions directly opposes the public interest. I urge the CFPB to act on its congressional mandate by restricting the abusive practice of forced arbitration in the final rule.