Arbitration

Arbitration has been used as an alternative to litigation as a method of amicably resolving disputes for over 80 years. In many cases, arbitration has benefited consumers by providing quicker and less expensive alternatives to litigation. Also, consumers with low value claims tend to benefit from the arbitration process, as attorneys are more reluctant to represent consumers that have low value claims. CBA believes arbitration can be a less costly and more effective method of dispute resolution for consumers and businesses, and attempts to ban pre-dispute arbitration are potentially harmful to consumers and may result in increased costs to consumers and unnecessary delay in deciding controversies arising from disputes. CBA believes arbitration is a meaningful and effective process for consumers and businesses to resolve disputes, and CBA is committed to efforts to oppose anti-arbitration legislation.
  • November 3, 2017
    Signed, Sealed and Delivered: President Trump Signs Arbitration Rule Repeal! A big win for consumers occurred this past Tuesday when President Trump signed a resolution repealing the CFPB’s arbitration rule. If this rule had gone into effect, it would have harmed consumers. From the beginning the rule was never about protecting American consumers and the CFPB’s own study backs that up. The only...
  • November 3, 2017
    By Nick Zulovich Senior Editor WASHINGTON, D.C. - President Trump followed through this week by signing H.J. Res. 111, which nullifies the Consumer Financial Protection Bureau's rule prohibiting the use of a pre-dispute arbitration agreement to prevent a consumer from filing or participating in certain class action suits. The final step in the process of canceling the rule that received sizable...
  • November 1, 2017
    WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement on President Trump’s signing of a Congressional Review Act resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule: “The CFPB’s rule was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets. The Bureau’s own study...
  • November 1, 2017
    WASHINGTON — President Trump has signed the congressional measure invalidating the Consumer Financial Protection Bureau’s arbitration rule, killing the regulation that was unpopular with banks and other financial institutions. The president signed H.J. Res. 111 in a closed meeting Wednesday afternoon, offering no public statement. The White House confirmed that the president signed the resolution...
  • November 1, 2017
    President Trump on Wednesday signed a repeal of the Consumer Financial Protection Bureau’s rule on forced arbitration, winning praise from banking and business groups. Trump approved the resolution to repeal the CFPB rule, meant to prevent banks and credit card companies from blocking customers from joining class-action lawsuits against them, in a private Oval Office signing. The House passed a...
  • October 31, 2017
    President Donald Trump will sign legislation overturning the Consumer Financial Protection Bureau’s mandatory arbitration rule Wednesday afternoon, according to a White House official. The president’s decision comes despite a personal appeal from CFPB Director Richard Cordray and veterans groups, who opposed a congressional vote to overturn the consumer watchdog's rule using the Congressional...
  • October 27, 2017
    Thoughts on Senate Vote Repealing CFPB’s Arbitration Rule With a deciding vote by Vice President Mike Pence, the Senate passed a resolution overturning the CFPB’s arbitration rule by a vote of 51 to 50. Overturning the CFPB’s arbitration rule ensures consumers retain the tools they need to receive relief without going through long, drawn-out, costly court proceedings – where no one benefits...
  • October 25, 2017
    WASHINGTON—Congress overturned a rule by an Obama-appointed financial regulator that would have made it easier for consumers to sue banks in groups, with Vice President Mike Pence casting a tiebreaking vote in the Senate. The 51-50 vote handed the financial industry its most significant legislative victory since President Donald Trump took office and was a rebuke of Consumer Financial Protection...
  • October 25, 2017
    Who benefits from this? Banks and large businesses. It will now be harder for consumers to take banks to court. The rule's repeal is one of the most significant and enduring victories for critics of the Dodd-Frank financial reform law, and was widely praised by groups like the U.S. Chamber of Commerce and the Consumer Bankers Association. Read Sylvan Lane's story here
  • October 25, 2017
    The U.S. Senate's vote to kill a rule that would allow consumers to file class-action lawsuits over disputes with banks, credit card companies and other financial service firms means that such cases will now likely be resolved through arbitration. President Trump is expected to approve the rollback, dealing a major setback to the Consumer Financial Protection Bureau, the federal watchdog created...

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