Consumer rights bill introduced in Congress
A bill backed by consumer groups to protect homeowners, employees and investors from mandatory arbitration agreements was introduced Thursday in the House and Senate. People from all walks of life — employees, investors, homeowners, those enrolled in HMOs, credit card holders and other consumers — often find themselves strong-armed into mandatory arbitration agreements," Feingold said. "We need to make sure that all Americans can still have their day in court."  Janet Ahmad, president of the advocacy group HomeOwners for Better Building in San Antonio, praised the legislation as an avenue to restore the rights of consumers when they are harmed by shoddy home building practices. Ahmad, who attended a Capitol Hill news conference, said home builders have used arbitration to subvert consumer laws.

Consumer rights bill introduced in Congress

07/12/2007 08:08 PM CDT
Gary Martin
Express-News washington bureau

WASHINGTON — A bill backed by consumer groups to protect homeowners, employees and investors from mandatory arbitration agreements was introduced Thursday in the House and Senate.

Sen. Russ Feingold, D-Wis., and Rep. Hank Johnson, D-Ga., filed similar bills that would preserve consumers' and employees' rights. It would protect their access to courts and legal redress against corporations and large companies.

"People from all walks of life — employees, investors, homeowners, those enrolled in HMOs, credit card holders and other consumers — often find themselves strong-armed into mandatory arbitration agreements," Feingold said.

"We need to make sure that all Americans can still have their day in court."

Janet Ahmad, president of the advocacy group HomeOwners for Better Building in San Antonio, praised the legislation as an avenue to restore the rights of consumers when they are harmed by shoddy home building practices.

Ahmad, who attended a Capitol Hill news conference, said home builders have used arbitration to subvert consumer laws.

Rep. Charlie Gonzalez, D-San Antonio, is backing the legislation in the House.

"When mandatory arbitration is forced upon consumers, it denies access to remedies that should normally be available in our civil justice system to resolve consumer, employment or civil rights disputes," said Gonzalez, a former state district judge.

In Texas, a state agency that oversees the home building industry has a dispute resolution process that likely would not be affected by the legislation.

Texas homeowners who have a complaint against a builder can ask the Texas Residential Construction Commission to determine whether the needed repairs should be covered by the builder's warranty. But the process is not legally binding.

If the issues are not resolved at the TRCC level, the homeowner can take legal action. Consumer groups have complained that the process is stacked in builders' favor.

Local builders groups, meanwhile, said they oppose the bill because it is unnecessary.

"We, of course, are not supporting the bill. We're of firm belief that TRCC has good jurisdiction, and that it is a very good process," said Becky Oliver, executive vice president of the Greater San Antonio Builders Association. "We think that the system is working."

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Express-News Business Writer Jennifer Hiller contributed to this report