Big Win for Consumers: CFPB Bans Ejudicate from Arbitrating Consumer Financial Products Disputes

October 10, 2024

Big Win for Consumers: CFPB Bans Ejudicate from Arbitrating Consumer Financial Products Disputes

Washington, D.C. - The Consumer Financial Protection Bureau (CFPB) just bannedprivate arbitration firm Ejudicatefrom arbitrating disputes involving consumer financial products, citing misconduct by the company. CFPB accused Ejudicate of initiating "sham arbitration proceedings" without the borrowers' consent and hiding its conflicts of interest from student borrowers, pretending to be a "neutral" arbiter when in fact they functioned as a debt collection tool for the creditor.

In response, Martha Perez-Pedemonti, Civil Justice and Consumer Counsel at Public Citizen, issued the following statement:

"The Consumer Financial Protection Bureau (CFPB) continues to walk the walk when it comes to protecting consumers of financial services against unfair, deceptive, and abusive practices. Especially as it relates to the scourge of forced arbitration, the CFPB is sending a clear message to financial service providers and to arbitration companies that deceptive practices will be called out and addressed by the CFPB. Consumers deserve the right to access a fair and impartial justice system, free from the influence of the financial services provider. We continue to encourage the CFPB to ensure that all consumers are protected from being forced into arbitration."