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Consumer Voice Urges End of Forced Arbitration in Long-Term Care Contracts in Response to CFPB Study

March 19, 2015

Positive news for consumers! On March 10th, 2015, the Consumer Financial Protection Bureau (CFPB) released a report and held a hearing on the use of forced, pre-dispute arbitration agreements in financial contracts. Such clauses strip consumers of their constitutional right to a trial by jury and force individuals - before any problem arises - to agree to settle through an arbitration process. They are commonly found in long-term care facility admission agreements, often used as a condition of admission into a nursing home, assisted living or other LTC setting, and place consumers and their loved ones at a disadvantage should incidences of harm, abuse and neglect occur. Consumer Voice supports the CFPB's attention to this matter and urge the agency to bar such clauses in financial contracts, as it will be an important step towards eliminating their use in all consumer contracts, including long-term care facility admission agreements! Read more in our press release on this matter here and on our policy webpage on forced arbitration here.

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