The National Consumer Law Center urges the Consumer Financial Protection Bureau (CFPB) to address how forced arbitration clauses in credit monitoring contracts are being used by consumer reporting agencies (CRAs) to compel arbitration of Fair Credit Reporting Act lawsuits. NCLC urges the CFPB to address this issue in its forthcoming FCRA rulemaking by prohibiting the inclusion of forced arbitration clauses in agreements offered by any subsidiary or affiliate of CRA that covers any claim against the CRA itself under the FCRA or regarding any issue except the product being offered by the subsidiary or affiliate itself.
The CFPB has ample rulemaking authority to issue such a rule, both under the FCRA and under the Consumer Financial Protection Act (CFPA). We also urge the CFPB to adopt a broad rule to prohibit pre-dispute arbitration clauses in all consumer financial contracts, but this comment is limited to consumer reporting issues.
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