Blumenthal Applauds CFPB For Inquiry Into Arbitration Clauses

(Washington DC) – Today, Senator Richard Blumenthal (D-CT) praised the Consumer Financial Protection Bureau (CFPB) for launching a public inquiry exploring how arbitration clauses affect consumers. These clauses prohibit consumers from bringing lawsuits against companies instead requiring the use of an often unfair and predisposed arbitration system.

“Consumers must have the right to remedies in court to hold companies accountable for poor service or excessive fees,” said Blumenthal. “The CFBP arbitration inquiry is a meaningful step toward ensuring consumers are not unfairly and unethically forced into a biased arbitration system. I will continue to fight for legislation that restores the people's right to hold corporations accountable.”

Recently, Blumenthal has taken action against arbitration clauses by introducing the Consumer Mobile Fairness Act, which would ban mandatory binding arbitration clauses in cell phone and mobile data service contracts, and cosponsoring the Arbitration Fairness Act with Senator Al Franken (D-MN), that prohibits pre-dispute arbitration agreements if it requires arbitration of an employment, consumer, or civil rights dispute.

Consumer Mobile Fairness Act: https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-franken-introduce-legislation-to-provide-justice-to-wireless-customers_ 

Arbitration Fairness Act: http://thomas.loc.gov/cgi-bin/query/z?c112:S.987:

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