Forced Arbitration Update

If you don’t already follow the Alliance for Justice, you should get on that. This week, the AFJ President, Nan Aron, wrote a great piece in the Huffington Post about forced arbitration. As we’ve covered before, forced arbitration (and the class-action bans that also often pop up in these same contracts) strips consumers of their constitutional right to a day in court if they have a grievance. The CFPB recently proposed changes to these rules after issuing a 700-page study ordered by Congress.

Aron writes, “We commend the CFPB for moving to prohibit class-action bans. But the agency should go further and ban forced arbitration entirely wherever it has the power to do so. And Congress should take the matter further still. Forced arbitration isn’t limited to financial services — companies of all kinds use it to cheat consumers and avoid accountability…Forced arbitration has no place in an American judicial system dedicated to equal justice under law.”

Corporations should be exempt from accountability by writing dubious clauses into the fine print. We support the efforts to prohibit bans on class-actions and to end forced arbitration.

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