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CFPB Ends Special Protection for Financial Firms and Protects Consumers' Right to Court

FOR IMMEDIATE RELEASE
Monday, July 10, 2017
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com

 

Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, released the following statement following the Consumer Financial Protection Bureau’s (CFPB) issuance of a final rule banning mandatory arbitration clauses:

“Standing up to the most powerful, politically connected financial firms in the country, the CFPB has today protected American consumers’ right to go to courts when they are ripped off just like when they are victimized by anyone else.

“When Americans are ripped off, they have the right to go to court and get compensated, except for the special treatment financial firms get.  Almost all contracts with banks and credit card companies contain tiny, fine print clauses forcing customers to bring any claims of fraud or abuse in private, industry-run arbitration proceedings, where recovery for consumers is rare and usually small.  The CFPB’s final rule released today will finally restore fairness, and ensure that consumers at least have the right to join with others who have been hurt by abusive practices in group lawsuits in court.  It’s a good day for investor and consumer protection.”

 

 

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.

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