Attorney General Frosh Joins Coalition of 20 Attorneys General in Urging Congress to Protect Legal Rights of Victimized Consumers
Maryland Attorney General Brian E. Frosh today joined a coalition of 20 attorneys general in urging U.S. Senate leaders not to repeal the Consumer Financial Protection Bureau’s (CFPB) Arbitration Rule, which stops companies from forcing consumers to sign away their legal rights.
The House recently passed a Joint Resolution of Disapproval that would set aside the CFPB’s rule under the Congressional Review Act. The attorneys general are asking the Senate to oppose that resolution and support consumers’ rights to go to court to assert their claims against financial institutions.
“Banks and Wall Street financial institutions have huge advantages over consumers,” said Attorney General Frosh. “The Arbitration Rule at least allows customers to go to court when they have been cheated. Congress should stand up for consumers, not bow down to Wall Street.”
The multistate letter was sent today to Senate Majority Leader Mitch McConnell and Minority Leader Charles Schumer.
“The CFPB’s Arbitration Rule would deliver essential relief to consumers, hold financial services companies accountable for their misconduct, and provide ordinary consumers with meaningful access to the civil justice system,” the letter states.
In August, a coalition of attorneys general sent a multistate letter to CFPB Director Richard Cordray supporting the CFPB’s rulemaking and calling for the restoration of these protections for consumers.
Restrictions on participation in class action cases are routinely inserted by financial institutions into contracts for financial products such as credit cards, payday loans, and checking accounts. Many consumers enter contracts without being aware that they are relinquishing significant rights, including their rights in court.
Attorney General Frosh joined the Attorneys General of California, Connecticut, Delaware, Hawaii, Iowa, Illinois, Massachusetts, Maine, Minnesota, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Oregon, Washington, Vermont and Virginia, as well as the District of Columbia and Hawaii’s Office of Consumer Protection, in writing this letter.