Sen. Franken Praises Top Consumer Agency for Proposal to Limit Unfair Arbitration Agreements

Press Release

Today, U.S. Sen. Al Franken (D-Minn.) released the following statement as the Consumer Financial Protection Bureau (CFPB) holds a high-profile hearing on a proposal to limit arbitration agreements between borrowers and financial companies:

"For years, I've been fighting to re-open the courtroom doors to consumers, workers, and small businesses in Minnesota," said Sen. Franken. "I applaud Director Cordray and the CFPB for proposing to limit the use of forced arbitration clauses in consumer financial services contracts. This news underscores what we have known for a long time and what the CFPB's recent study has substantiated--arbitration agreements in financial contracts severely restrict Americans' access to courts by preventing wronged consumers from joining together for justice.

"It's time we restore Americans' right to challenge unfair practices in court and secure their access to meaningful legal redress. I'll continue to push the CFPB to establish a final rule that provides protection for all consumers by prohibiting the use of arbitration clauses in financial services contracts."

As a strong advocate for consumers and workers in cases of forced arbitration, Sen. Franken has long been fighting to ban these type of contracts. He reintroduced his comprehensive legislation with Rep. Hank Johnson (D-Ga.)--called the Arbitration Fairness Act--to restore the rights of consumers, workers, and small businesses to seek justice through the courts. Sen. Franken has also previously introduced legislation to ban mandatory arbitration clauses in cell phone and mobile data service contracts and in college enrollment contracts.

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