Arthur Bryant of Public Justice argues that the CFPB should ban mandatory arbitration.

Recent decisions by the U.S. Supreme Court have given banks, credit card companies, and all other lenders a license to steal billions from consumers and small businesses. The U.S. Consumer Financial Protection Bureau (CFPB) has the power to rescind that license. On Tuesday, at a hearing in Newark, the CFPB is expected to announce whether it will do so. If it does what the facts and law require, it must.

In two cases in the past four years, the Supreme Court allowed corporations to charge allegedly illegal fees to millions of consumers and small businesses, net billions, and walk away with the money. The corporations’ form “agreements” barred all lawsuits against the companies, required consumers and small businesses to pursue their claims individually in arbitration, and banned class actions. The court enforced these agreements, even though that meant the companies would never be held accountable.

Sadly, these two cases weren’t anomalies. Far too many lenders cheat and mislead consumers, charging inflated and illegal fees or interest. But the court has given them near-total immunity.

Thankfully, that can be changed – and should be soon. When Congress passed the Dodd-Frank Act in 2010, it created the CFPB and required the new agency to study the use of arbitration clauses by lenders. Congress said that the CFPB should prohibit or limit their use if it found that they harm consumers. The evidence proves that forced-arbitration clauses hurt consumers badly.

This issue affects everyone in America.

Here’s the bottom line:

The primary effect of mandatory-arbitration clauses is to suppress claims by consumers, allow corporations to break the law, and prevent our civil justice system from providing injunctive relief (like having debts forgiven or credit records cleared) and compensation to millions of consumers.

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The CFPB should ban mandatory arbitration clauses and rescind the lenders’ license to steal. Consumers are entitled to what is engraved on the front of the Supreme Court – “Equal Justice Under Law” – not what the Supreme Court has given them: