Consumer Financial Protection Bureau

Congress Should Put Consumer Choice Over Profits for Bad Actor Banks

Today, Members of Congress introduced resolutions to quash the Consumer Financial Protection Bureau’s (CFPB’s) recent rulemaking restricting the use of forced arbitration under the Congressional Review Act (CRA).

“The consumer agency’s rule would restore to consumers the choice to band together to seek refunds when their bank breaks the law. The financial industry claims that arbitration is superior to pursuing claims in court. If true, then consumers will choose this option – they shouldn’t be forced into it with fine print,” said Michael Best Director of Advocacy Outreach at Consumer Federation of America.

The CRA introductions follow a new poll showing that three out of four voters support the CFPB’s mission and that two out of three voters back the ban on forced arbitration rip-off clauses in consumer financial contracts. Just last week, Consumer Federation of America joined with 310 consumer, civil rights, labor, and community groups to strongly support the rule. The Military Coalition, which represents 5.5 million servicemembers and their families, also supports the rule.

“Banks routinely sue their customers and banks want to retain the option to join class actions when they’ve been wronged. If going to court is good enough for banks, then why do they want to foreclose the same option on their customers? Congress should put their constituents and the Constitution first, not the financial interests of banks.”

Contact: Michael Best, 202-939-1009

The Consumer Federation of America is a nonprofit association of more than 250 consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.