[Congressional Record (Bound Edition), Volume 155 (2009), Part 3]
[Extensions of Remarks]
[Page 3735]
[From the U.S. Government Publishing Office, www.gpo.gov]




           INTRODUCTION OF THE CONSUMER FAIRNESS ACT OF 2009

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                         HON. LUIS V. GUTIERREZ

                              of illinois

                    in the house of representatives

                      Wednesday, February 11, 2009

  Mr. GUTIERREZ. Madam Speaker, I rise today to announce the 
introduction of my bill, the Consumer Fairness Act of 2009. In the last 
decade, too many of our nation's consumers have been subjected to 
abusive payday lending and increasingly relied on high-cost credit 
cards and predatory mortgage loans. To make matters worse, a consumer's 
ability to fight back against predatory lenders or to challenge unfair 
credit card fees and rates has been severely constrained by consumer 
contracts that require binding, mandatory arbitration to settle 
disputes between the borrower and the lender. We cannot allow these 
unfair practices to compound our economic challenges.
  Mandatory arbitration clauses undermine existing consumer 
protections. They prohibit class action lawsuits by requiring consumers 
to waive their right to access a court of law and by forcing them into 
an arbitration system that has been set up for the benefit and 
expediency of corporate America. In many cases, individual consumers 
are required to pay thousands of dollars in arbitration fees that they 
cannot afford before their case is even heard. If this strikes my 
colleagues as unfair, then I ask them to support my bill, the Consumer 
Fairness Act of 2009.
  The Consumer Fairness Act of 2009 would prohibit binding arbitration 
clauses in any consumer contract by recognizing these clauses as an 
unfair and deceptive trade practice. This legislation will help to 
level the playing field in the fight against predatory lending 
practices by giving consumers access to the courts and to class action 
lawsuits in order to address these unfair practices in an environment 
free of bias. When our constituents suffer through the worst recession 
in decades, the very least we can do is to give them a fair environment 
to defend themselves against predatory practices.

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