In a push to end mandatory arbitration agreements in consumer financial service contracts, senators and consumer advocate groups are urging the Consumer Financial Protection Bureau to create rules against forced arbitration agreements. According to the Consumerist and the Hill, the lawmakers are asking the Consumer Financial Protection Bureau to use its authority to issue rules prohibiting mandatory arbitration clauses in financial agreements.

The lawmakers argue that the clauses impact millions of consumers as these arbitration clauses are found in "credit card, checking account, student loan, and wireless phone contracts." These mandatory arbitration clauses are often hidden in consumer contracts forcing the individual into mandatory arbitration, and depriving them of the opportunity to have their action heard in a court of law.

Written by:   Alexandra Siskopoulos, Esq.

Telephone:   (646) 942-1798

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