A recent Wall Street Journal article is reporting that some small and regional U.S. banks are prohibiting unhappy customers from taking their complaints to court or joining class-action lawsuits. Instead, financial institutions are requiring them to resolve disputes through arbitration, a process that may not be in the best interest of consumers. A few key highlights from the article:

The Dodd-Frank financial-overhaul law requires the newly formed Consumer Financial Protection Bureau to examine mandatory-arbitration agreements, but doesn’t set a specific time frame for the agency to do so.

“We need more scrutiny over these things and make sure they are fair to consumers,” said Susan Weinstock, a project director at Pew.

…

“What the banks have done with these arbitration programs is buy themselves immunity with respect to complaints about their consumer practices,” said Bruce Rogow, a lawyer at Alters Boldt Brown Rash & Culmo in Miami, which is involved in the overdraft cases.

All of this comes on the heals of the CFPB launching its online credit card complaint form when the Bureau stood up July 21, and the mystery that still remains regarding how consumers will file complaints about other financial products.

When it comes to the payday advance, and CFSA Members, we want to make sure customers have a way to communicate with our Member Companies. You can either click here to fill out our complaint form, or send us an e-mail at LoanQuestions@CFSAA.com. Please note that our complaint form only applies to CFSA Member Companies.