Public Justice Speaks Out for Consumer Rights and the CFPB on Capitol Hill
Photo by Daniel Mennerich via Flickr
Two weeks ago, the Consumer Financial Protection Bureau unveiled a new rule that would prohibit lenders from including forced arbitration clauses with class action bans in their lending contracts. Today, Public Justice’s Executive Director, Paul Bland, will testify in front of the House’s Financial Institutions and Consumer Credit Subcommittee in support of this rule.
The CFPB’s new rule will help do away with some of the financial industry’s most predatory practices. Too many families have been tricked into taking out loans that were more expensive than they seemed, or were improperly charged fees by their banks, with no way of seeking legal action for these injustices. With this new rule, these families will be able to fight for the justice they deserve through class action suits, which are often the most effective way of protecting consumers from the industry’s most vicious practices.
While the CFPB’s rule makes sense for consumers, banks are fighting back. The U.S. Chamber of Commerce has previously said that “all options are on the table” for curbing the CFPB rule. Today’s hearing will include testimony from three of the Chamber’s allies. They will all try to make the case that our courts should remain closed to consumers. But Public Justice will urge Congress to look past the distractions of Corporate America and at the facts about arbitration and the harms it inflicts on consumers.
Tune in online as Paul explains how the CFPB’s proposed rule benefits consumers. You can also read Paul’s prepared testimony here, and then be sure to check out this interview with Paul about today’s hearing in Daily Kos.
View the whole hearing in the YouTube video below. Paul’s testimony begins at 43:10: