But this story is about more than Capitol Hill power-politicking. Elizabeth Warren and President Obama aren’t even the real victims here. The CFPB was tasked by the Dodd-Frank bill with conducting a study on forced arbitration clauses (“arbitration of any future dispute,” in the statutory language) in consumer financial products and services. Once that study is complete, the agency will have the power to enact regulations consistent with its results. Those results probably won't look good
Millions of Americans are already subject to forced arbitration contracts, and every day thousands more unwittingly sign, click, or become unilaterally subject to new fine-print terms. The Supreme Court’s
Every day that the White House and Senate are delayed from confirming a director to the CFPB pushes back the time when this badly-needed change will come to the financial industry. And that day is already going to be six months too late for many.