Proposed Rules Would Ban Forced Arbitration Clauses

The Consumer Financial Protection Bureau recently proposed regulations that would ban forced arbitration clauses in all contracts that involve consumer credit transactions. As described in this ThinkProgress article, the rules aim to stop banks, credit card companies and other financial institutions from depriving consumers of their rights in court.

Arbitration clauses require people to renounce their right to participate in class-action lawsuits, forcing them to use the private arbitration system if they feel they’ve been cheated by a bank, payday lender, mobile phone company or other consumer credit provider. Many people don’t realize forced arbitration clauses are buried in the fine print of many contracts. The clauses force people to give up their right to go to court, even if a company wrongfully takes money from them. When consumers are forced to instead use secret arbitration, there is no judge or jury and the arbitrators do not have to follow the law.

Nursing homes are another industry that frequently includes forced arbitration clauses. This can mean residents who are harmed in nursing homes cannot take the responsible companies to court. More info can be found at the website Fair Arbitration Now.

If you or a loved one has been injured in a serious accident or is subject to a forced arbitration clause and have questions about your rights to go to court with your case, you need to speak with an experienced attorney. For more than 20 years, our team at Dixon Law Office has helped injury victims get the compensation they deserve to cover medical bills, long-term care, lost wages, pain and suffering, and other related expenses. Contact us at toll-free at 888-354-9880, or click here for a free consultation.