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.
  • 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
    Republicans have handed US banks one of their biggest wins of the Trump era, striking down an Obama-era rule that would make it easier for consumers to sue them over wrongdoing. Mike Pence, US vice-president, stepped in late on Tuesday to deliver the killer blow in the effort to scrap the rule, securing a landmark victory for Republicans in their campaign to undo regulations perceived to be anti-...
  • October 24, 2017
    “This rule was ill-conceived, based on an incomplete study and did not fulfill the Bureau’s goal of protecting consumers.” WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement after the U.S. Senate passed a Congressional Review Act resolution overturning the Consumer Financial Protect Bureau’s (CFPB) arbitration rule: “The Senate acted to...
  • October 24, 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 23, 2017
    The Consumer Financial Protection Bureau ’s arbitration rule is once again under fire – this time from the U.S. Department of the Treasury . This new rule would ban companies from using mandatory arbitration clauses, allowing consumers to participate in class-action lawsuits. However, it has been met with strong resistance from every front. The latest attack comes from a new report from the...
  • October 20, 2017
    ​Cordray, Noreika Arbitration Spat Heats Up CFPB Director Richard Cordray and Acting OCC Comptroller Keith Noreika continue to publicly air their disagreements over the merits of the CFPB’s arbitration rule. Recently, both agency heads published dueling op-eds in The Hill challenging each other’s views of the rule. This week, the debate continued to escalate as both challenged the validity of the...
  • October 2, 2017
    WASHINGTON—A coalition representing financial companies sued the Consumer Financial Protection Bureau Friday, challenging a new rule making it easier for consumers to band together to sue over complaints about bank accounts, credit cards and payday loans. The groups—a range of finance trade groups and the U.S. Chamber of Commerce—are fighting a rule released in July barring fine-print...
  • October 2, 2017
    The latest attack on the Consumer Financial Protection Bureau ’s arbitration rule comes from the finance industry, with several finance groups and chambers of commerce filing a lawsuit challenging the rule. According to a Ballard Spahr blog on the lawsuit by Mark Levin and Alan Kaplinsky, the lawsuit seeks to stay the implementation of the arbitration rule. The U.S. Chamber of Commerce , American...
  • October 2, 2017
    Both sides are digging in, as an effort to repeal a rule published by the Consumer Financial Protection Bureau heads for the U.S. Senate. The CFPB rule, which was published in July, severely limits lenders’ ability to compel consumers to submit disputes to binding arbitration instead of taking disputes to court, and makes it easier for consumers to file class-action lawsuits. Binding arbitration...

Pages