Waters Applauds Consumer Bureau for Issuing Final Rule to Curb Forced Arbitration
Today, Congresswoman Maxine Waters (D-CA), Ranking Member of the House Committee on Financial Services, applauded the Consumer Financial Protection Bureau’s (Consumer Bureau) issuance of a final rule to prohibit mandatory arbitration clauses in contracts for consumer financial products. Ranking Member Waters made the following statement:
“I applaud the Consumer Financial Protection Bureau for finalizing this important rule to clamp down on forced arbitration. No consumer should ever be forced to sign away their legal rights in order to open a bank account, obtain a credit card, finance a car, or obtain a private student loan so that they can pursue their education. The Consumer Bureau’s rule is a critical step in stopping this problematic practice, ensuring that financial institutions are held accountable, and protecting consumers, including service members and veterans.”
In 2016, 65 House Democrats, led by Reps. Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services; John Conyers, Jr. (D-MI), Ranking Member of the Committee on the Judiciary; and Henry C. “Hank” Johnson, Jr. (D-GA), Ranking Member of the Subcommittee on Regulatory Reform, Commercial and Antitrust Law, sent a letter to the Consumer Financial Protection Bureau expressing strong support for its proposal to limit forced arbitration in consumer contracts.