Regulators Find Binding Arbitration Clauses Hurt Consumers

Watchout for Arbitration Clauses Consumers!  The CFPB has found these clauses everywhere the consumer buys virtually any good or service with a contract.  The CFPB has found no evidence to support the business-lobby’s claim that arbitration keeps costs down.  Instead, the CFPB has found that they block consumers from effective means to fight rip-offs by, among other things, banding together in groups or class actions.  These clauses are signed “pre-dispute” when consumers are happy with their new purchase and not thinking in detail about potential rip offs or problems that may occur or be discovered later.    Businesses should not use form contracts to take away consumers’ fundamental right to access the Court system and a jury of their peers.