For Immediate Release: June 17, 2015

AAJ Statement on Passage of Appropriations Amendment to Obstruct CFPB Forced Arbitration Rule

Contact:
Sarah Jones
Email:
media.replies@justice.org
Phone:
(202) 684-9582
Washington, DC— The following is a statement from American Association for Justice CEO Linda Lipsen on today’s passage of the Womack-Graves Amendment in the U.S. House of Representatives Committee on Appropriations markup of the FY 2016 Financial Services and General Government Appropriations Bill. 
 
“The Womack-Graves amendment undercuts the very mandate Congress issued to the Consumer Financial Protection Bureau when it was created in 2010 – to protect American consumers from financial frauds, schemes, and abuses. The Bureau’s 728-page study of forced arbitration made it clear that a swift ban on this anti-consumer practice is necessary to ensure that unscrupulous financial institutions are held accountable when they cheat and harass their customers. 
 
“Instead of letting the CFPB continue its efforts to restore cheated consumers’ access to justice, this amendment would severely disrupt rulemaking by requiring the Bureau to repeat its comprehensive study, open a public comment period on the conclusive report that was released in March, and force the Bureau to ask Congress for permission before taking any action. 
 
“Congress must reject any attempt to prevent the CFPB from protecting consumers from rigged forced arbitration systems. The financial industry was welcome to participate in every step of the Bureau’s study, and Congress should not grant them an opportunity to obscure the truth.

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The American Association for Justice works to preserve the constitutional right to trial by jury and to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others—even when it means taking on the most powerful corporations. Visit http://www.justice.org