A Breaking News Update from Denver: Public Justice Righting Wrongs

I'm in Denver today to observe and participate in a hearing of the Consumer Financial Protection Bureau. We are just hours away from CFPB unveiling a sketch of its proposals to address the way forced arbitration clauses are used by lenders.  The main takeaway is that the CFPB intends to prohibit lenders from using arbitration clauses with their customers, if those clauses prohibit customers from bringing, or being members of, class actions. 

This is a HUGE deal!  Public Justice has been filing comments with, and advocating before the agency, for years, putting in hundreds of hours of work. We are proud to be part of a broad coalition of consumer advocacy and civil rights groups who have been urging the agency to take these strong, necessary steps.  Many Members of Congress, and state attorneys general, also weighed in with the strong view that lenders' abuse of forced arbitration clauses was gutting the enforcement of consumer protection laws. 

As I told the New York Times this morning, this is a huge step forward for consumer protection.  Indeed, it is an exceptionally exciting development. In its own statement, the CFPB notes that eliminating forced arbitration clauses that ban class actions will return to many consumers their right to a day in court, will help deter illegal conduct by lenders, and will enhance the transparency of the justice process.  I couldn't agree more.

I want to particularly thank all of you. Your support of Public Justice's work has ensured that we have the resources to help put this on the national radar. And while today's proposal is a very big victory, it is not the last step. There will still be a comment period, to allow small businesses and others to weigh in, before final regulations are adopted. That's why I'm hoping you'll consider a one-time gift today to help us push these changes across the finish line. We'll be up against hefty opposition, including the full resources of the U.S. Chamber of Commerce, an organization with a budget that dwarfs our own.

If you can, please pitch in today to help us fight back and get this done. With your help, we can begin to curb these ridiculously unfair arbitration clauses and ensure the courthouse doors remain open for us all.

Thanks for being part of this win,

Paul

P.S.: We anticipate that the CFPB will live stream this morning's hearing from here in Denver on their website. Tune in to learn more about these incredible developments beginning at 11am MT |1pm ET today.