Consumer advocacy groups including, Public Justice and the American Association for Justice, submitted a rulemaking petition targeting pre-dispute arbitration clauses. This petition has been supported by law professors, consumer protection, civil rights, and organized labor organizations, and military and Veterans’ groups. According to Public Justice, the rule most recently received congressional support.
Senator Elizabeth Warren, Representative Hank Johnson, and nearly 100 Members of Congress have shown their support for the new Consumer Financial Protection Bureau (CFPB) rule via a letter. The new rule would help protect consumers against being unknowingly trapped into forced arbitration by big banks and financial service providers.
Martha Perez-Pedemonti, Civil Justice and Consumer Rights Counsel at Public Citizen said, “Forced arbitration is a rigged game, one that corporate players in the financial industry nearly always win. We applaud Sen. Warren and her colleagues for joining the call urging the CFPB to level the playing field so that customers who are wronged by a financial services company are once again able to have their day in court.”
To read more about the rule and the support it has received, click here to read Public Justice's article. Advocate Capital, Inc. is thankful for the important work done by Public Justice to protect consumers from corporate wrongdoing. If you would like to be a financial supporter, click here to be taken to Public Justice's website.
