Foster, Merkley Introduce Bicameral Investor Choice Act
Washington, DC – Today, Congressman Bill Foster (D-IL) and Senator Jeff Merkley (D-OR) introduced the Investor Choice Act, legislation to prohibit pre-dispute mandatory (or "forced") arbitration agreements and ban prohibitions on class action lawsuits in customer contracts in certain financial sectors. Investors are often forced to agree to these terms in order to receive services from broker-dealers or investment advisors.
"Individuals shouldn't need to surrender their legal rights because they choose to work with a financial advisor or broker-dealer to plan for their retirement and invest their hard-earned money," said Congressman Foster. "This legislation levels the playing field for consumers and prevents them from being victims of a rigged system that denies them fair legal recourse if they are wronged. I'm proud to work with Senator Merkley on this important legislation for American consumers."
“Every consumer deserves a fair shot at justice when they've been wronged or taken advantage of by investors," said Senator Merkley. “But when an investment advisor or broker chooses the judge, pays the judge, and promises future business to the judge, it's clear that the system meant to deliver that justice is rigged. It’s long past time we stand up for consumers. This year is the year to pass the Investor Choice Act.”
The legislation is endorsed by the American Association for Justice, Americans for Financial Reform, the Consumer Federation of America, the North American Securities Administrators Association, the Public Investor Advocate Bar Association, and Public Citizen.
The Investor Choice Act is cosponsored by US Senators Dick Durbin (D-IL), Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), Catherine Cortez Masto (D-NV), and Sheldon Whitehouse (D-RI), and US Representatives Sean Casten (D-IL-06), Jan Schakowsky (D-IL-09), Gregory Meeks (D-NY-05), Nydia Velázquez (D-NY-07), and Madeleine Dean (D-PA-04).
A copy of the bill can be found here.
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