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Tomorrow, the federal Consumer Financial Protection Bureau (CFPB) is expected to release a new rule that forbids consumers from entering into arbitration contracts that preclude class-action lawsuits. This rule will make it harder for customers to enforce their rights against companies—hurting rather than helping the consumers the CFPB is charged with protecting.
The only beneficiaries of the CFPB's new rule are the trial lawyers who funnel campaign cash to politicians like Richard Cordray, the Obama administration's CFPB director.
James R. Copland is a Senior Fellow and Director of Legal Policy at the Manhattan Institute