WASHINGTON—Vanita Gupta, president and CEO of The Leadership Conference on Civil and Human Rights, issued the following statement in response to today’s release by the Consumer Financial Protection Bureau (CFPB) of a final rule that helps protect consumers from forced arbitration:
“Most consumers are not aware of the forced arbitration clauses that financial service corporations include in the lengthy, complex contracts consumers are pressured to sign. These forced arbitration clauses block consumers who have been wronged from joining class action lawsuits or otherwise appearing before an impartial court that can consider their injuries. By forcing consumers into secret arbitration, corporations have long enjoyed an advantage in the process, and victims have often been precluded from sharing their stories with the press or law enforcement.
The CFPB rule is simple. It says that consumers have the right to join together to enforce protections guaranteed by the Constitution, or federal, state, or local law. This is yet another example of how the CFPB is living up to its mandate – to put the concerns and welfare of the consumer above those of corporations that too often seek to take advantage of them.”
The Leadership Conference on Civil and Human Rights is a coalition charged by its diverse membership of more than 200 national organizations to promote and protect the rights of all persons in the United States. The Leadership Conference works toward an America as good as its ideals. For more information on The Leadership Conference and its 200-plus member organizations, visit www.civilrights.org.