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CFPB Puts Corporations on Notice for Shady Terms and Conditions

Washington, D.C. – This week, the Consumer Financial Protection Bureau (CFPB) issued a circular warning against the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services. Companies use this fine print tactic to try to trick consumers into believing they have given up certain legal rights or protections.

In response, Martha Perez-Pedemonti, civil justice and consumer counsel at Public Citizen, released the following statement:

“We applaud the CFPB’s actions this week. Consumers and financial service providers alike desperately needed clarification regarding the types of deceptive acts and practices that are prohibited. By issuing this circular, the CFPB signals its intent to continue taking meaningful steps to fulfill its mandate of protecting consumers from unfair, deceptive, or abusive practices and penalize companies that break the law. We appreciate the CFPB’s continued efforts and strongly support this move to explain how and why fine print tricks and intimidation tactics in contracts harm consumers, and welcome the CFPB’s efforts to hold corporations accountable.”