Democratic presidential nominee Hillary Clinton pledged this week to bolster the CFPB and move to ban binding arbitration clauses in contracts, saying that the Wells Fargo scandal, as well as other debacles, demonstrates the need for expanded consumer protection.
“Too many of the rules and incentives in our economy encourage those at the top to abuse their power and take advantage of consumers, workers, small businesses, and taxpayers,” the Clinton campaign stated in a fact sheet as Clinton spoke in Ohio on Monday.
Clinton said that, as president, she would work to ensure that consumers, employees and small businesses can fight back on a level playing field by banning mandatory arbitration clauses in contracts. She said consumers should be permitted to take businesses to court rather than being required to go through arbitration.
She said that she would push Congress to give agencies, such as the Federal Trade Commission and the FCC, the power to restrict the use of arbitration clauses in consumer, employment and antitrust contexts.
She also said she would order federal agencies to use their authority to ban the use of arbitration clauses and said the SEC should pursue rulemaking under Dodd-Frank to ensure that investors have appropriate legal recourse if they are wronged.
The CFPB has issued proposed rules that would restrict the use of arbitration clauses in consumer contracts. Credit union trade groups oppose that effort.
Clinton said she will fight Republican efforts to place restrictions on the CFPB and to roll back Dodd-Frank.
Republican presidential nominee Donald Trump has called for a moratorium on new federal regulations.
