Litigation vs. Arbitration – New bill aimed to repeal FINRA and Mandatory Arbitration
April 19, 2019
The enforceability of “forced arbitrations” “mandatory arbitrations” and other pre-dispute agreements to arbitrate claims, including securities disputes has been a point of focus since March 2019. Earlier this year Sen. Sherrod Brown (D-Ohio) introduced the Arbitration Fairness for Consumers Act (S. 630) in the Senate Committee on Banking, Housing, and Urban Affairs. The proposed bill aims to amend the Consumer Financial Protection Act of 2010 (CFPA) by prohibiting mandatory arbitration and class action waivers in contracts that relate to a “consumer financial product or service.”
In a March 1, 2019 press release, Senator Brown was quoted as stating:
“Forced arbitration is about big companies silencing victims and giving more power to corporations that already have too much power over the lives of working Americans. Ending the use of forced arbitration in student loans, credit card agreements, and employment contracts gives working Americans a fighting change against powerful special interests.”
Senator Brown is hoping to empower consumers, workers and others whom have been wronged by large corporations by limiting mandatory and forced arbitrations. When victims are provided access to the court system, they can litigate their disputes, while utilizing the 7thamendment right to a trial by jury.
The link to the full text of the proposed Arbitration Fairness for Consumers Act can be found here: https://www.govtrack.us/congress/bills/116/s630/text
If you or someone you know have fallen victim to fraud, investment fraud or have any questions as to FINRA or arbitration, we encourage you to call our offices today at 619-432-5145 for a free consultation with one of our FINRA lawyers and arbitration specialists.