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Forced Arbitration on Table With CFPB Contract Clause Review

Sept. 14, 2022, 6:00 PM

The Consumer Financial Protection Bureau is reviewing contractual clauses in consumers contracts, potentially taking a fresh look at those that force consumers into arbitration with banks and other companies, Director Rohit Chopra said.

Mandatory arbitration clauses can be invoked to block consumers from bringing cases in federal courts and, instead, have their complaints heard by a company-paid arbitrator. Consumer advocates say that the process is biased against consumers and doesn’t allow them appropriate recourse when harmed by companies.

Chopra, speaking Wednesday at an event hosted by public advocacy group Public Citizen, said the CFPB was taking a look at “all ...