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Ending Mandatory Arbitration for Investors: More Choice in Dispute Resolution

This act aims to give investors more freedom in resolving disputes with financial firms. Instead of being forced into arbitration, citizens will be able to choose court or class action lawsuits, potentially making it easier to seek redress in cases of fraud.
Key points
Prohibits mandatory pre-dispute arbitration agreements for brokers, dealers, and investment advisers.
Investors can now freely choose between arbitration and court for dispute resolution.
Enables participation in class action lawsuits, increasing the chances for defrauded investors to recover funds.
Existing mandatory arbitration clauses in agreements become void, unless arbitration has already begun.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_2620
Sponsor: Rep. Foster, Bill [D-IL-11]
Process start date: 2021-04-16
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Investor Choice Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2620.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-16.

What are the main provisions?

Key points include:

  • Prohibits mandatory pre-dispute arbitration agreements for brokers, dealers, and investment advisers.
  • Investors can now freely choose between arbitration and court for dispute resolution.
  • Enables participation in class action lawsuits, increasing the chances for defrauded investors to recover funds.
  • Existing mandatory arbitration clauses in agreements become void, unless arbitration has already begun.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Foster, Bill [D-IL-11].

What is the latest detailed status?

The latest detailed status is: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 27 - 23.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Courts and Law Economy