Recently introduced legislation aims to establish a Consumer Financial Protection Agency, but also includes language that would restrict mandatory pre-dispute arbitration, a move strongly opposed by the Assisted Living Federation of America and other senior living supporters.
Introduced by House Financial Services Committee Chairman Barney Frank (D-MA), Section 125 of the Consumer Financial Protection Agency Act of 2009 (HR 3126) states:
[The new Consumer Financial Protection Agency], by regulation, may prohibit or impose conditions or limitations on the use of agreements between a covered person and a consumer that require the consumer to arbitrate any future dispute between the parties arising under this title or any enumerated consumer law if the Agency finds that such prohibition, imposition of conditions, or limitations are in the public interest and for the protection of consumers.
Stay tuned to ALFA Update for the latest on this legislation, and visit the Federal Public Policy section of Assisted Living Federation of America’s web site for position papers and links to members of Congress.
Breaking news from the National Arbitration Forum: National Arbitration Forum to Cease Administering All Consumer Arbitrations in Response to Mounting Legal and Legislative Challenges
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