“Today, it is hard to open up a checking account, rent a car, get cable service or check a loved one into a nursing home without agreeing to mandatory arbitration.”
- Jessica-Silver Greenberg, New York Times
If you’ve ever been ripped off by a bank or corporation, you know how difficult it can be to get a fair resolution. No matter how egregious the company’s action, you’re one small person facing an entity that often has massive legal resources. To make matters worse, many companies include “mandatory arbitration” clauses in their contracts that specifically prevent their customers from seeking justice in a court of law.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) issued a rule to limit the use of such clauses. This week the US Senate handed a victory to financial abusers by rolling back that rule. If the Senate vote stands, predatory and deceptive companies will be shielded from scrutiny by the law, leaving victims with limited options to fight unfair or deceptive business practices.
Self-Help’s CEO, Martin Eakes, commented on this problem this week in the Credit Union Journal. Our affiliate, the Center for Responsible Lending (CRL), also issued a statement with more information about the Senate vote and its implications.