|
Washington, D.C.—
The National Consumers League announces its support for H.R.
5312, the
Automobile Arbitration Fairness Act of 2008, sponsored by
Congresswoman Linda Sanchez (D-CA), who serves as Chair of the
Subcommittee on Commercial and Administrative Law.
"We support this legislation because it will help to restore
fairness to transactions involving auto buyers and auto
dealers," said Sally Greenberg, NCL Executive Director. "This is
a much-needed bill that would help level the playing field
between consumers and salespeople -- giving consumers rights in
that the vast majority are currently signing away."
HR 5312 will bar mandatory arbitration clauses (BMA) in
contracts between these parties, thus allowing consumers,
specifically auto buyers, who have been wronged -- by fraud,
violations of state or federal laws, or other concerns in their
purchase of a car from auto dealers -- the option to go to a
court of law to seek a remedy. Today, experts estimate somewhere
around 90 to 95 percent of such contracts for sale of an
automobile contain mandatory arbitration clauses barring
consumers from the right to go to court.
"Mandatory arbitration clauses tend to favor the stronger, more
knowledgeable, more experienced, and better financed party with
an unfair advantage in influencing the outcome of a dispute,"
said Greenberg. "These clauses create a private system of
justice that is not accountable to an appellate body and can
cost the weaker party large sums of money."
Several years ago the
National Automobile Dealers Association, in a letter to
Congressman Jerry Nadler (D-CA), assured him that NADA did not
support BMA clauses in consumer contracts and would not oppose
legislation freeing auto buyers from having BMA clauses imposed
on them.
In 2002, Congress passed a law protecting auto dealers from
having mandatory arbitration clauses forced upon them. Now it is
time for Congress offer the same protection to auto buyers. NCL
applauds Congresswoman Sanchez for her leadership on this issue
and also commends those members of the subcommittee and other
House members who have co-sponsored the bill.
Co-sponsors of the bill include:
Ms. LINDA T. SANCHEZ of California Mr. CONYERS, Mr. COHEN, Mr.
WATT, Ms. ZOE LOFGREN of California, Mr. JOHNSON of Georgia, Mr.
KUCINICH, Ms. WASSERMAN SCHULTZ, Mr. WEXLER, and Mr. DELAHUNT. |
