Financial companies routinely use mandatory arbitration to block class-action lawsuits, making it difficult for consumers to win big payouts in disputes over credit cards and other products, a U.S. regulator found.

When credit card issuers have faced suits seeking class- action status, companies invoked arbitration clauses to keep squabbles out of court almost two-thirds of the time, according to a Consumer Financial Protection Bureau study published today. The findings pave the way for the agency to propose a ban of forced arbitration or to severely restrict the practice.

“These arbitration clauses restrict consumer relief in disputes with financial companies by limiting class actions that provide millions of dollars in redress each year,” Richard Cordray, the CFPB’s director, said in an e-mailed statement. “Now that our study has been completed, we will consider what next steps are appropriate.”

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