By Joel Shapiro.
The Consumer Financial Protection Bureau (CFPB) recently issued a comprehensive report to Congress on arbitration clauses.  The study was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  The report covers pre-dispute arbitration clauses in six different consumer financial product markets: credit cards, checking accounts, prepaid cards, private student loans, payday loans, and mobile wireless third-party billing.

The report found that:

• over 50% of credit card loans contain binding arbitration clauses
• 94% of credit card loans would include binding arbitration clauses if not for an antitrust suit against a number of card issuers
• 44% of deposits in checking account  include arbitration clauses in the account contracts
• close to 100% of market share in the six product markets studied prohibit class action suits in their arbitration provisions
• Consumers are generally unaware that their credit card contracts include arbitration clauses
• Consumers don’t understand that they don’t have the right to go to court
• Most consumers whose agreements contain arbitration clauses wrongly believe that they can participate in class action suits

See the report here:  http://www.consumerfinance.gov/reports/arbitration-study-report-to-congress-2015/”