NACA’s Comments to CFPB re: CFPB’s Consumer Awareness Study on Arbitration

Release Date: 
August 7, 2013
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On August 6, 2013, NACA submitted comments to the Consumer Financial Protection Bureau’s (CFPB) Request for Information on its proposed survey, titled ‘‘Telephone Survey Exploring Consumer Awareness of and Perceptions Regarding Dispute Resolution Provisions in Credit Card Agreements.”   The consumer survey is part of the CFPB’s effort to study the use of mandatory pre-dispute arbitration (“forced”) clauses in consumer financial contracts, which is required under the Dodd-Frank Act.  We expect that the CFPB’s study and a clearly drafted and carefully executed consumer telephone survey will confirm what the available empirical research already demonstrates: that not only are forced arbitration clauses harmful to consumers and designed to immunize corporations, but very few consumers are actually aware of and meaningfully agree to forced arbitration clauses.  We hope that once the CFPB has gathered and studied all the empirical evidence available, it will take concrete action to protect consumers from the harm caused by forced arbitration in consumer financial contracts.  

Read the comments here.