CFPB Launches Probe into Arbitration Clauses

Last week, the Consumer Financial Protection Bureau (CFPB) began an investigation into how arbitration and arbitration clauses are affecting financial services companies and consumers.

The Bureau is asking the public about the following:

  • The frequency of arbitration clauses in consumer financial services and products
  • What claims consumers bring in arbitration against financial services companies
  • If claims brought by companies are affected by actual arbitrations
  • How consumers and companies are affected by arbitration clauses outside of the actual arbitrations

Debate has surrounded arbitration clauses and whether or not they are as fair as litigation. Some feel it is faster, cheaper and fair, while others say that consumers may not realize they have waived their right to a trial because of an arbitration clause.

If you or a loved one has been wronged by a financial services company, contact Sokolove Law for a free legal consultation.