From: The Honorable Keith Ellison
Sent By:
carol.wayman@mail.house.gov

Bill: H.R. 1098
Date: 9/21/2016

H.R. 1098: Ban Pre-Dispute Mandatory Arbitration in Investment Contracts

Preserve Investor’s Legal Rights

 

Cosponsor the Investor Choice Act of 2015, H.R. 1098

Supporting Organizations: American Association for Justice (AAJ); Americans for Financial Reform (AFR); Center for Justice & Democracy (CJ&D); Consumer Action; Consumer Federation of America (CFA); Consumers for Auto Reliability and Safety (CARS); D.C Consumer
Rights Coalition; Homeowners Against Deficient Dwellings (HADD); National Association of Consumer Advocates (NACA); National Association of Shareholder and Consumer Attorneys (NASCAT); National Consumers League; National Employment Lawyers Association (NELA);
North American Securities Administrators Association (NASAA); Public Investors Arbitration Bar Association (PIABA); Public Citizen; U.S. PIRG

Current co-sponsors: Representatives Bonamici, Capuano, Carson, Cohen, Cartwright, Cicilline, DeFazio, Frankel, Grijalva, Heck, Hinojosa, B. Lee, Lynch, Meeks, McCollum, Pocan, Schakowsky, Swalwell, Tonko and Tsongas

Dear Colleague:

Please cosponsor the Investor Choice Act of 2015, (H.R. 1098), which would ban mandatory pre-dispute (or “forced”) arbitration agreements in customer service contracts between investment advisers and broker-dealers and their clients.

Mandatory pre-dispute arbitration contracts require investors submit to arbitration if they feel wronged; in other words, to surrender their right to seek recourse in a court or in front of a jury. Moreover, since such agreements are required prior to a dispute
even occurring they compel investors to unconditionally waive these rights even before the facts and circumstances of a dispute are known.

The Investor Choice Act would protect investors from abuse of the arbitration process. The bill also prohibits agreements that forbid investors from participating in class action lawsuits.

An investor’s right to go to court to recover monetary damages is essential to maintaining confidence in our capital markets and future investments by our constituents – in other words, to strengthen our economy. H.R. 1098 would not in any way limit or restrict
the ability of investors to voluntarily agree to arbitrate any disputes with their broker or investment adviser, should they wish to do so after the facts and circumstances of the dispute are known.

Media coverage of mandatory arbitration in investment contracts has appeared in the

Wall Street Journal
and the
New York Times
.  Articles and columns supporting the bill include
Investment News
,
Think Advisor
,
Reuters
 and
prweb
.

To cosponsor or for more information, contact Carol Wayman at
carol.wayman@mail.house.gov
or at 5-4755.

Sincerely,

/s/

Keith Ellison
Member of Congress