Attorney General Bob Ferguson became one of 15 Attorneys General from across the country to encourage the Consumer Financial Protection Bureau (CFPB) to regulate mandatory arbitration clauses in consumer agreements for financial products or services.
The problem is that some financial institutions have been tucking arbitration clauses into the fine print of contracts, especially when opening a checking account or issuing a credit card. Consumers are often not aware of these clauses existing when they agree to sign them. These clauses prevent consumers from taking legal action against the institution for any reason.
“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,” reads the letter to the CFPOB, “The predictable result of such a situation is not only unfairness to the harmed customers, but also a systemic failure to hold accountable those companies who abuse the trust placed in them by customers.”