[Congressional Record Volume 163, Number 126 (Wednesday, July 26, 2017)]
[Extensions of Remarks]
[Page E1054]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVIDING FOR CONGRESSIONAL DISAPPROVAL OF THE RULE SUBMITTED BY BUREAU 
  OF CONSUMER FINANCIAL PROTECTION RELATING TO ARBITRATION AGREEMENTS

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                               speech of

                           HON. LOIS FRANKEL

                               of florida

                    in the house of representatives

                         Tuesday, July 25, 2017

  Ms. FRANKEL of Florida. Mr. Speaker, I rise today in opposition of 
House Joint Resolution 111 which would eliminate the Consumer Financial 
Protection Bureau's rule prohibiting mandatory arbitration clauses in 
financial services contracts. These clauses, which are buried in the 
fine print of banking contracts, strip consumers who are scammed, 
cheated, or defrauded by big banks of their constitutional right to 
seek justice in our nation's courts. Instead, they force consumers to 
go through a secretive non-judicial process overseen by an arbitration 
provider chosen by the bank. According to a study conducted by the 
CFPB, when these disputes are resolved through arbitration, consumers 
receive relief in only 9 percent of claims and even when consumers do 
win, they recover, on average, only 12 cents for every dollar claimed. 
I support the CFPB rule and oppose this effort to allow big banks to 
deny customers access to the justice system.
  The elimination of the forced arbitration rule protects the special 
interests of Wall Street and hurts consumers. I therefore urge my 
colleagues to vote no on this Resolution.

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