Richard Cordray, my hero

Mandatory arbitration clauses were created by corporate lawyers about 15 years ago and buried in the fine print of credit card contracts and checking account agreements. But they may not live much longer following the March 10 publication of a three-year study by the Consumer Financial Protection Bureau. The 728-page report confirmed what consumer advocacy groups have long argued: Mandatory arbitration doesn’t much help customers but does prevent expensive lawsuits against banks. The bureau was required to complete the report under the Dodd-Frank Act prior to issuing new regulations. “Now that our study has been completed, we will consider what next steps are appropriate,” said CFPB Director Richard Cordray in a statement…

The bureau can count on supporters who have successfully fought off efforts to defang it since its creation in 2010. Those include Senator Al Franken. The Minnesota Democrat has for years railed against forced arbitration clauses not only in consumer finance agreements but also in employment, mobile phone, and cable-TV contracts…

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