CFPB Bans Consumer Arbitration Group

A few days ago, the Consumer Financial Protection Bureau permanently banned consumer arbitration company Ejudicate, Inc. (dba Brief) from ever arbitrating consumer arbitration cases again.

Ejudicate, a Los Angeles-based online service, describes itself as “revolutionizing financial resolution”  by providing an online platform for “settlement and adjudication.”  The CFBP described it as something more than that.  The CFPB determined that Ejudicate commenced arbitration proceedings against consumers who never agreed to be subjected to Ejudicate’s authority. 

 For that, Ejudicate was determined to have violated the Consumer Financial Protection Act.  But Ejudicate also got in trouble for failing to disclose that it had financial interests “aligned” with a creditor that used Ejudicate’s services. 

 Ejudicate was fined, but only one dollar, an amount that was decided upon taking into account its “inability to pay more based on sworn financial statements.”

To read the Consent Order, click here.