Wyden, Dems target unfair consumer contracts
Sens. Ron Wyden (D-Ore.) and Al Franken (D-Minn.), Rep. Hank Johnson (D-Ga.) and a broad coalition of more than 50 members of Congress continued to fight Thursday to protect the rights of consumers in Oregon and across the country who are being hurt by forced arbitration contracts in the financial services industry.
In a letter to the Consumer Financial Protection Bureau — the top consumer agency in the country — the lawmakers called on the CFPB to swiftly issue new rules that eliminate the use of forced arbitration clauses in consumer financial service contracts — things like credit cards, checking accounts, payday loans, private student loans, and cell phone contracts.
They say forced arbitration clauses often prevent Oregonians and everyday consumers from taking companies to court for legal relief, and instead put victims of wrongdoing at a disadvantage.
“These clauses force individuals into private binding arbitration as a condition of buying a product or service, and are designed to stack the deck against consumers and ensure that the final outcome of forced arbitration is unreviewable by courts,” wrote the lawmakers. “Forced arbitration clauses—often buried deep within the fine print of financial products and service contracts—harm American consumers by depriving them of their day in court even when companies have violated the law.”
In March, the CFFPB released a study howing that forced arbitration agreements have prevented consumers from finding relief when they are wronged. More than 100 groups have also called on the CFPB to issue new rules.
In addition to Wyden, signers of the letter included Sens. Al Franken (D-Minn.), Patrick Leahy (D-Vt.), Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), Bernard Sanders (I-Vt.), Jack Reed (D-R.I.), Robert Menendez (D-N.J.), Sheldon Whitehouse (D-R.I.), Tom Udall (D-N. Mex.), Jeff Merkley (D-Ore.), Tammy Baldwin (D-Wis.), Mazie Hirono (D-Hawaii), Elizabeth Warren (D-Mass.), Heidi Heitkamp (D-N. Dak.), and Ed Markey (D-Mass.).
In the House of Representatives, 41 members of Congress signed the letter.
