CFPB weighs in On Arbitration Clauses
Attorney David Humphreys, partner in Humphreys Wallace Humphreys, P.C. law firm, was interviewed by Tulsa World columnist Ginnie Graham for her story on the recent announcement by the Consumer Financial Protection Bureau (CFPB) concerning the widespread use of arbitration clauses in financial products.
“Arbitration in and of itself is not bad,” Humphreys said. “But if it's hidden in consumer contracts, people don't know what they are getting into. Once they have a problem, then they are handcuffed, and their rights are gone.
“If arbitration is agreed to between businesses or a business and individual after a dispute comes up, then they go into it with eyes wide open.”
“It's a check against the power of big companies,” Humphreys said. “It's a check that allows the courts to be open to protect people's rights, and it's a stop of the continuing erosion of the ability for people to protect themselves.”
“It's a win, but it's not a final win,” Humphreys said. “People's rights are up in the air, and we'll have to see how it all plays out. People who are affected need to speak out, call their congressmen and stand up for their freedoms from being cheated.
“It's a small step in the right direction. It's been a losing battle, and this is a glimmer of hope that people will have access to justice going forward, though it's uncertain how it will play out.”
See Graham's full article here: