CFPB seeks information on how arbitration affects consumers

The Consumer Financial Protection Bureau (CFPB) today issued a Request for Information on Arbitration to gather information on how arbitration clauses affect consumers and how effective arbitration is in resolving consumers’ issues. The Request is an early step in assessing whether rules are needed to protect consumers. The comment period is open until June 23, 2012. 

Comments

[KAE]

I recently was forced into arbitration regarding an interstate commerce agreement. I had a written distributor agreement from a Texas manufacturer who had an arbitration clause in the agreement that all disputes were to go through AAA in Dallas, Texas. The manufacturer violated the Wisconsin Fair Dealership Law when they terminated my distributorship without stating any cause after I discovered that their reps were taking $100,000 orders from my customers direct in an effort of garnering a higher commission. During the discovery process of arbitration, I also discovered that a rep that was fired was still purchasing products direct from the manufacturer in an effort to side step distribution. The Texas arbitrator stated in his award "insufficient evidence to support the Wisconsin Fair Dealership Claim." It should never have been arbitrated in Texas as the arbitrator was not qualified with regard to Wisconsin Law. In addition, the arbitrator knew I would be unable to appeal his decision because the manufacturer dragged the process out causing huge legal fees for me. Now I am saddled with a potential judgement lien and am being forced out of business. My credit was ruined in the process and it has been difficult finding a job because of it. To AAA it is big business as this manufacturer has had 3 arbitration cases in the past year.

[travel guide]

Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming.