The Consumer Financial Protection Bureau has conducted a study of mandatory arbitration for consumers, finding that less than 10 percent of consumers won awards in cases with American Arbitration Association neutrals, The National Law Journal's Jenna Greene reports. In contrast, consumers won 1,200 individual lawsuits in court, and consumers won $2.7 billion in cash, in-kind relief, expenses and fees through class actions.
The agency also found no evidence that arbitration clauses led to lower prices for consumers, Greene further reports.
The study could lay the groundwork for the agency to regulate arbitration agreements in the financial-services sector, Greene also reports.
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