Fifteen State Attorneys General Send the CFPB a Letter Urging

Regulation of Forced Pre-Dispute Arbitration
 

On November 20,  fifteen state Attorneys General sent the Consumer Financial Protection Bureau a letter urging the CFPB to use its authority to regulate forced arbitration provisions in consumer financial contracts.  They wrote:

“Mandatory pre-dispute arbitration is procedurally unfair to consumers, and jeopardizes one of the fundamental rights of Americans; the right to be heard and seek judicial redress for our claims. These contractual requirements are neither voluntary nor readily understandable for most consumers.  Often consumers do not recognize the significance of these provisions, if they are aware of them at all.”

The state AGs are from:  Delaware, Massachusetts, Kentucky, California, Connecticut, Hawaii, Illinois, Iowa, Maine, Maryland, New Mexico, New York, Oregon, Rhode Island, Vermont and Washington.