“Rip-off Clause” May Come to an End
Lisa Gilbert and Lisa Donner note in The Hill today that the so-called “Rip-off clause” in financial contracts may soon come to an end thanks to the Consumer Finance Protection Bureau (CFPB).
Specifically, they say:
Known as forced arbitration, this system of bought-and-paid-for justice has worked out very well for what The New York Times calls the “Wall Street-led coalition of credit card companies and retailers” that designed it. The great majority of injured consumers, once they find themselves locked out of court, simply drop their complaints.
By stripping people of any meaningful way to hold companies accountable for fraud or abuse, forced arbitration grants Wall Street an effective license to steal from consumers to pad its bottom line.
Tennessee Citizen Action is proud to have joined 280 organizations from around the country in supporting the CFPB’s proposal to stop the “rip-off clause” and protect consumers.
For more on consumer protections in Tennessee, follow @TNCitizenAction