Consumer Bureau May Have Final Say on Arbitration Clauses
The Dodd-Frank Act gives the Consumer Financial Protection Bureau explicit authority to study use of arbitration clauses related to financial products and services.”
A 2007 report by Public Citizen found that, over a four-year period, arbitrators sided with credit card companies 94% of the time in disputes with California consumers.
Consumer advocates have long argued that it’s unfair to deny people the right to sue or to band together in class actions, which are often the only effective way of addressing relatively small claims.
So if the Consumer Financial Protection Bureau comes to the same conclusion, does it have the power to do anything about it?
The answer, it seems, is yes.