CFPB prohibits Ejudicate for deceptive practices in student loan arbitration.

The Consumer Financial Protection Bureau (CFPB) has prohibited the dispute resolution platform Ejudicate from arbitrating consumer financial disputes. The CFPB found that Ejudicate misled student borrowers by falsely claiming neutrality and failing to disclose its financial ties to creditor Prehired. The agency accused Ejudicate of initiating arbitration without borrowers' consent and imposed a $1 penalty, emphasizing that arbitration processes must not favor corporate interests over consumers.

October 10, 2024
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