AAJ Statement on House Hearing to Evaluate Consumer Bureau’s Forced Arbitration RuleMay 18,2016
Washington, DC— The following is a statement from American Association for Justice CEO Linda Lipsen on today’s hearing in the United States House of Representatives Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit, entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?”
“The CFPB’s 728-page study on forced arbitration is both comprehensive and conclusive: Forced arbitration allows corporations to grant themselves a license to rip-off their customers without ever being held accountable in court. Today’s hearing is nothing more than Wall Street’s last-ditch effort to obstruct a widely supported and long-overdue rule that will ensure that consumers have a fair shot at receiving justice when big banks, payday lenders, debt relief scammers, and other financial corporations cheat them out of their hard-earned money.
“The Bureau’s comprehensive study clearly shows that the use of forced arbitration against consumers is indefensible. Instead of desperately clinging to the abusive use of forced arbitration, corporations that want to avoid litigation should respect their customers and follow the law."