On the recordOctober 25, 2017
today I wish to discuss the vote in the Senate last night to overturn the Consumer Financial Protection Bureau's rule regarding forced arbitration that would protect consumers and make sure they get their day in court when financial institutions violate the law. The floor schedule did not allow me to give these remarks before the vote, so I am giving them today. This rule would have restored the ability of servicemembers, veterans, and other consumers to join together and seek relief through class action lawsuits. I opposed this rule repeal. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act included a provision instructing the CFPB to study mandatory arbitration and write a rule based on what they found. After several years of careful study, the CFPB released a 728-page report in 2015. This year, the CFPB finalized its arbitration rule mandating that consumer financial product contracts no longer include language barring class actions. This rule was an important step forward in protecting consumers from the fine print arbitration clauses included in all sorts of contracts, including contracts for credit cards, debit cards, prepaid bank cards, payday loans, and even cell phones. The 2015 CFPB report found that 93 percent of consumers whose credit cards included forced arbitration clauses did not know that they could not sue their credit card companies. The CFPB rule enhanced protections for consumers in the military.…
