Over 100 Consumer, Labor and Civil Rights Groups Call on CFPB to Take Action on Banking Fraud and Forced Arbitration
Over 100 consumer, civil rights, and labor groups today called on CFPB Director Rohit Chopra to exercise the agency’s authority to limit forced arbitration clauses, which are commonly buried in the fine print of consumer financial contracts to eliminate the rights of customers seeking accountability when scammed, cheated, or defrauded by big banks. The CFPB previously promulgated a rule limiting the use of forced arbitration and class action waivers. After the Trump administration took office, a 50-50 Senate vote struck down the rule when former Vice-President Mike Pence broke the tie in favor of allowing big banks to use forced arbitration freely. The groups signing this letter urge Director Chopra to engage in a public conversation on how the secret, accountability-killing practice of forced arbitration leads to greater fraud in the financial sector that affects every day Americans’ lives.
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