Sen. Elizabeth Warren, D-Mass., asked the CEOs of large financial institutions point blank whether they think the Consumer Financial Protection Bureau's restriction on forced arbitration clauses should be reversed.
Pointing out that the U.S. Chamber of Commerce, the American Bankers Association and the Financial Services Roundtable have been pressuring Congress to overturn the rule, Warren wrote: "If your lobbyists are taking such strong positions against the rule, is there a reason both you and your bank have been unwilling to take a public position?"
Her Aug. 10 letter was addressed to the heads of Ally Financial Inc., American Express Co., Bank of America Corp., Barclays US LLC, BB&T Corp., Capital One Financial Corp., Charles Schwab Corp., Citigroup Inc., Citizens Financial Group Inc., HSBC North America Holdings Inc., JPMorgan Chase & Co., PNC Financial Services Group Inc., SunTrust Bank, U.S. Bancorp, TD Group US Holdings LLC and Wells Fargo & Co. It asked for, among other things, data on the companies' use of forced arbitration clauses in contracts covered by the CFPB's rule; statistics on cases initiated under arbitration, customers affected and amounts paid out; and copies of any analysis done regarding the rule's impact on customers or profits.
Warren asked that responses be submitted by Sept. 1