July 11, 2017
Media contact: NCL Communications, Cindy Hoang, email@example.com, (202) 207-2832
Washington, DC— After five years of careful study, the Consumer Financial Protection Bureau (CFPB) today issued its final rule to greatly restrict the use of forced arbitration clauses in consumer contracts. The National Consumers League (NCL) applauds the CFPB’s efforts to restore consumers’ right to challenge financial fraud in court, and the agency’s realization of its congressional mandate under the Dodd-Frank Act to rein in this practice.
The following statement is attributable to Sally Greenberg, NCL executive director:
“Forced arbitration is a tactic employed by corporate America to deprive consumers of their day in court when companies engage in misconduct. These ‘ripoff clauses’ are always buried in the fine print of contracts and have the effect of curtailing consumers’ legal rights and forcing them into closed arbitration sessions bought and paid for by company interests. Since the arbitrators rely on industry for business, arbitrators too often side against harmed consumers and in favor of their corporate clients–in fact, 93 percent of the time. Under the new rules, companies will not have free rein to use these odious clauses, which NCL believes gives a green light for toxic corporate behavior. The CFPB’s rule will help restore the rights of consumers to join class-action lawsuits and bring transparency to the opaque process of arbitration. NCL is proud to stand with more than 280 consumer, civil rights, labor, and community groups to support the CFPB’s arbitration rule. Today’s action is an important step forward in the fight to empower consumers in the financial marketplace.”
About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.