Consumer Groups Ask CFPB to Take New Stab at Curbing Arbitration

Consumer advocates are pushing the Consumer Financial Protection Bureau to take another shot at restricting arbitration clauses in financial contracts.

The National Association of Consumer Advocates, Public Citizen, the National Consumer Law Center, the Consumer Federation of America, and other consumer advocacy groups filed a petition Wednesday asking the CFPB to write a rule allowing consumers to choose whether a dispute with their financial services provider goes through the courts or through arbitration at the time the dispute arises.

“The lack of meaningful consent is a fundamental problem for consumers in the financial markets,” said Christine Hines, NACA’s legislative director. ...