A champion for consumer rights and fairness, Senator Reverend Warnock joined colleagues in introducing the Arbitration Fairness for Consumers Act, legislation to prohibit banks and other financial institutions from using forced arbitration clauses against consumers seeking justice in the courts
As the chair of the U.S. Senate Banking Subcommittee on Financial Institutions and Consumer Protection, Senator Reverend Warnock is committed to ensuring that Georgians are protected from unfair, abusive, and deceptive acts and practices in our financial system, including financial scams and fraud
Senator Warnock has long been an advocate for Georgia consumers, having led his colleagues in introducing a plan to lower high gas prices, working to end misleading subscription practices and calling out predatory scams as we recover from the pandemic
Senator Reverend Warnock: “No Georgian deserves to be victimized by financial scams or fraud, and I’m going to fight to pass this bill that will help make sure they have all the tools available to them to seek justice and accountability”
ICYMI from August 2021: Senator Reverend Warnock Chairs First Senate Banking Subcommittee Hearing, Underscores Prevalence of Consumer Scams in the Pandemic Recovery Economy – MORE HERE
Washington, D.C. – U.S. Senator Reverend Raphael Warnock (D-GA) joined Banking Committee Chair Sherrod Brown (D-OH) in introducing the Arbitration Fairness for Consumers Act today, legislation to prohibit banks and other financial institutions from using forced arbitration clauses against consumers seeking justice in the courts.
“No Georgian deserves to be victimized by financial scams or fraud, and I’m going to fight to pass this bill that will help make sure they have all the tools available to them to seek justice and accountability,” said Senator Reverend Warnock.
Financial institutions use arbitration clauses to take away consumers’ rights to pursue a trial by jury or to join a class action lawsuit. Consumers with disputes are forced into private, closed-door arbitration proceedings that are not only inconvenient and costly, but are also ones in which consumers rarely prevail. Such clauses are typically non-negotiable, and companies frequently hide them in agreements that are lengthy and dense. The Arbitration Fairness for Consumers Act bans these abusive practices. The Act amends Title X of the Consumer Financial Protection Act of 2010 to prohibit pre-dispute arbitration agreements and class-action waivers in contracts for consumer financial products or services. Under the Act, such agreements would be neither valid nor enforceable.
Along with Senators Warnock and Brown, the legislation was cosponsored by U.S. Sens. Brian Schatz (D-HI), Elizabeth Warren (D-MA), Robert Menendez (D-NJ), Chris Van Hollen (D-MD), Dianne Feinstein (D-CA), Bernie Sanders (I-VT), Edward Markey (D-MA), Jack Reed (D-RI), Richard Blumenthal (D-CT), Alex Padilla (D-CA), Ron Wyden (D-OR), Sheldon Whitehouse (D-RI), Mazie Hirono (D-HI), Amy Klobuchar (D-MN), Catherine Cortez Masto (D-NV), Dick Durbin (D-IL), Cory Booker (D-NJ), Bob Casey (D-PA), and Kirsten Gillibrand (D-NY). Additionally, the legislation has been endorsed by the American Association for Justice, Public Citizen, UnidosUS, US PIRG, Center for Responsible Lending, Consumer Federation of America, Americans for Financial Reform, National Association of Consumer Advocates, and the National Consumer Law Center (on behalf of its low-income clients).