CPR Archive for James Goodwin

It's Time to Give Customers of Financial Services and Products Their Day in Court

by James Goodwin | October 10, 2016

Originally published by the Oxford Business Law Blog. Reprinted with permission.

Forced arbitration clauses are now almost impossible to avoid in consumer contracts for financial services and products ranging from credit cards to private student loans. Despite their ubiquity, most consumers aren't even aware of them. This is because companies frequently bury them deep in the lengthy fine print of their contracts, which they then offer to consumers on a 'take it or leave it' basis.

Forced arbitration clauses warrant close scrutiny from policymakers and the public because their abuse poses a significant threat to the financial well-being of millions of Americans. What they say is that if you have a dispute with your financial services company and can't persuade the company to address the harm it has caused, you are prohibited from suing the corporation in court. Instead, your only option is to try pursuing your claim in an inferior forum known as 'arbitration'.

Consumers face high barriers to even initiate an arbitration claim, and, once started, they will find that every step of the process is heavily stacked against them and in favor of the financial services company. The basic principles of fairness and due process protections we have come to expect in traditional courts of law are often conspicuously absent in arbitration.

Following the 2008 economic meltdown, the US Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act to crack down on the ...

House Passes Bill to Silence Agency Experts and Frustrate Public Participation in the Regulatory Process

by James Goodwin | September 15, 2016
Last night, the House of Representatives, in an almost completely party-line vote, passed the Regulatory Integrity Act (H.R. 5226), a bill that would prohibit the U.S. Environmental Protection Agency (EPA), the Food and Drug Administration (FDA), and other agencies from engaging the public on their pending efforts to address climate change, prevent foodborne illness, and otherwise act in the public interest. Center for Progressive Reform Senior Policy Analyst James Goodwin offered the following reaction to the bill's passage:  Poll after poll ...

Five Years Ago Today: When Obama Put Politics Ahead of the Public Interest

by James Goodwin | September 02, 2016
September 2, 2011, was a lot like today, the Friday before a long holiday weekend.  While many were already turning their attention to backyard barbecues and afternoon naps in hammocks, the then-Administrator of the White House Office of Information and Regulatory Affairs (OIRA) Cass Sunstein, the controversial official charged with supervising federal regulatory activities, dropped a bombshell. In a notice known as a “return letter,” Sunstein publicly announced that President Obama was rejecting what would have been one of the most important ...

Presidential Transitions Are Important. So Why Aren't They More Transparent?

by James Goodwin | August 31, 2016
Next Wednesday, Public Citizen is holding an important event that aims to promote greater transparency in the presidential transition process. The transition process is among the most critical events in our constitutional system of democracy. As the Center for Presidential Transition lays out in detail in its Presidential Transition Guide, this process is where the incoming president's policy agenda is formulated, where candidates for key administrative posts are selected, and where at least the first year of budget priorities are ...

Comments from CPR: Forced Arbitration Proposal Is Strong but Should Be Stronger

by James Goodwin | August 23, 2016
Yesterday, several CPR Member Scholars and staff formally submitted comments on the Consumer Financial Protection Bureau's (CFPB) proposed rule to limit the use of forced arbitration agreements in consumer contracts for financial products like credit cards and bank accounts.  CPR Member Scholars and staff have been tracking this rulemaking for over a year and in May 2016 published a report that assessed several key issues shortly before the CFPB released its proposal. In particular, our report evaluated the CFPB's preliminary ...

Sorry, Senator Vitter. The CFPB Is in Full Compliance with Small Business Outreach Law.

by James Goodwin | August 15, 2016
While the Rolling Stones' "You Can't Always Get You Want" may be an ill-advised campaign song, perhaps it can still serve as the official theme song for Sen. David Vitter's (R-LA) Government Accountability Office (GAO) report requests. The anti-regulatory senator had requested that the GAO audit the Consumer Financial Protection Bureau (CFPB) – a favorite punching bag of the right – to determine whether it is complying with the small business outreach requirements imposed by the Small Business Regulatory Enforcement ...

Memo to the Next President: Build a Regulatory System That Works for the People

by James Goodwin | July 14, 2016
In an earlier post, CPR Member Scholar Robert Glicksman discussed the need for the next president to champion a truly positive vision of government and regulation. A new way of thinking and talking about these issues is critically important, and the president should play a key role in charting this course.  While a rhetorical shift is important and long overdue, it is also crucial that the next president be prepared to match actions to words. Consequently, the next president should ...

CPR's Driesen to Give House Judiciary a Tough Review of OIRA

by James Goodwin | July 06, 2016
This afternoon, the House Judiciary Committee's Subcommittee on Regulatory Reform, Commercial, and Antitrust Law will hold an oversight hearing that looks at the Office of Information and Regulatory Affairs (OIRA), the powerful White House bureau that sits at the center of the regulatory universe.  Originally created to oversee federal agencies' implementation of the Paperwork Reduction Act, a series of presidential executive orders stretching back to the Reagan administration has endowed OIRA with a powerful gatekeeping role over executive agencies' rulemaking ...

Latest House Anti-Regulatory Package Is Beyond Stale

by James Goodwin | June 14, 2016
This afternoon, Speaker Paul Ryan is scheduled to announce the House majority's latest plan to weaken the U.S. system of regulatory safeguards on which all Americans depend. The following is Center for Progressive Reform Senior Policy Analyst James Goodwin's reaction to this plan:  Speaker Ryan and his anti-regulatory apostles in the House would have you believe that their latest attack strategy on our system of regulatory safeguards is a serious, forward-looking plan. In fact, everything it contains is not just ...

CPR's Glicksman to Senate Subcommittee: EPA's Job Is to Protect Everyone

by James Goodwin | June 06, 2016
Tomorrow, the Senate Environment and Public Works Committee's Subcommittee on Superfund, Waste Management, and Regulatory Oversight is set to hold a hearing investigating the Environmental Protection Agency's (EPA) compliance with the Unfunded Mandates Reform Act (UMRA). UMRA is striking because it was passed in 1995 as part of then-House Speaker Newt Gingrich's attacks on the U.S. regulatory system – an era that is reminiscent of today's strident anti-regulatory zeal. Indeed, today's anti-regulatory members of Congress continue to explore ways to ...

CPR's Buzbee to Set the Record Straight on WOTUS at Senate Hearing

by James Goodwin | May 24, 2016
This afternoon, the Fisheries, Water, and Wildlife Subcommittee of the Senate Environment and Public Works Committee will convene a hearing on a topic that is fast becoming the congressional conservative equivalent of talking about the weather: the Environmental Protection Agency's (EPA) Clean Water Rule.  With the provocative title of "Erosion of Exemptions and Expansion of Federal Control – Implementation of the Definition of Waters of the United States," the hearing is unlikely to provide a sober or thoughtful forum for ...

Want to Address Economic Inequality? Strengthen the Regulatory System

by James Goodwin | May 17, 2016
The growing problem of economic inequality in the United States continues to draw significant attention – and for good reason. By 2011, America's top 1 percent owned more than 40 percent of the nation's wealth, and ours ranks as one of the most unequal economies among developed countries. Meanwhile, the median wage rate for workers has remained largely unchanged in real terms over the last 40 years – even as worker productivity has grown at a steady clip – contributing ...

New Study Brings 'Trickle Down' Illogic to Regulatory 'Costs' Estimates

by James Goodwin | May 09, 2016
These days, it seems a week doesn't go by without some conservative advocacy group releasing a new study that purports to measure the total annual costs of federal regulation. In this case, it's literally true. Last week, the reliably anti-regulatory Competitive Enterprise Institute (CEI) put out its annual tally, provocatively titled "Ten Thousand Commandments," which this year finds a total cost of $1.885 trillion for 2015. And the week before that, the just-as-reliably anti-regulatory Mercatus Center published a report that ...

How Conservatives Sell Off the Federal Budget, Bit by Bit, to the Highest Bidder

by James Goodwin | May 02, 2016
Once upon a time, congressional conservatives pretended to care about the appearance, if not the reality, of corruption afflicting the federal budgeting process. Strangely, they chose to act on their sanctimonious outrage by banning earmarks – or legislative instructions that direct federal agencies to spend appropriated funds on certain specified projects – while leaving the much greater problem of "limitations riders" intact. These riders essentially function as the reverse of earmarks by prohibiting federal agencies from spending appropriated funds on certain specified ...

CPR's Mintz Outlines Flaws of House Bill That Would Undercut SEPs

by James Goodwin | April 28, 2016
Center for Progressive Reform Member Scholar Joel Mintz submitted written testimony to the House Judiciary Committee's Subcommittee on Regulatory Reform, Commercial, and Antitrust Law ahead of its hearing this morning on yet another ill-advised bill, the misleadingly named "Stop Settlement Funds Slush Funds Act of 2016." The bill would place arbitrary limits on how the federal government can use funds it obtains through settlement agreements that arise from enforcement actions brought against companies that have violated federal laws and the ...

On Regulatory Reform, It's Now Warren vs. Sunstein

by James Goodwin | April 19, 2016
Several weeks ago, Sen. Elizabeth Warren delivered perhaps the most important speech on the U.S. regulatory system in recent memory at a forum on regulatory capture organized by the Administrative Conference of the United States. In it, she described how the regulatory system was not working for the people as it should be – or as Congress had intended. Instead, she described how corporate influence over the regulatory process has become so far-reaching and so overwhelming that it has become ...

No Benefits Allowed? Mercatus Study on Federal Regulation and the States

by James Goodwin | April 08, 2016
Over the last few years, deregulatory advocates have pursued a well-trodden path for advancing their anti-safeguard agenda: Publish a large, glossy "study," replete with impressive mathiness, that purports to measure the impacts of regulation but in fact provides a highly skewed portrayal by consciously ignoring the many benefits that regulations provide. (For example, see here, here, and here.) Last week, the libertarian Mercatus Center did the latest trodding when it released a study that ranked all 50 states (and the ...

18th Straight OMB Annual Report in a Row Finds Total Regulatory Net Benefits

by James Goodwin | March 15, 2016
Over the weekend, the White House Office of Management and Budget (OMB) released the final draft of its annual report on the costs and benefits of federal regulation, which purports to provide a reasonably complete picture of the total impact that federal regulations have on the U.S. economy. This year’s final report finds that federal regulations generated total benefits in the range of $216 billion to $812 billion (in 2001 dollars; in 2010 dollars, the range recalculates to $261 billion ...

Also from James Goodwin

James Goodwin, J.D., M.P.P., is a Senior Policy Analyst with the Center for Progressive Reform. He joined CPR in May of 2008.

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