Consumer Law

Two New Bills in Congress Seek to Restrict Arbitration Agreements

Two bills making their way through Congress are taking aim at the practice of including binding arbitration agreements in consumer-facing contracts, particularly those in financial industry contracts.

In March, Sen. Sherrod Brown, D-Ohio, introduced the Arbitration Fairness for Consumers Act (S. 630) in the Senate Committee on Banking, Housing, and Urban Affairs. Sen. Brown’s bill proposes amendments to 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.” The bill would apply prospectively “to any dispute or claim that arises or accrues on or after the date of the enactment of this Act.”

Read the source article at Legal News & Business Law News

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