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CBA Commends House’s Leadership in Overturning CFPB’s Arbitration Rule, Encourages Senate to Act
Trial attorneys receive over $1 million on average per class action lawsuit; average consumer receives $32 in cash recoveries
Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement following House passage of a resolution overturning the Consumer Financial Protection Bureau’s (CFPB) arbitration rule.
“Today’s House vote is a resounding victory for consumers. Consumers’ access to arbitration, which has long provided a faster, more cost-effective, and higher recovery alternative to class action lawsuits, should not be undermined by a harmful rule resulting from an incomplete study by the CFPB. The Bureau’s own study shows the average consumer receives $5,400 in cash relief when using arbitration and just $32 through a class action suit,” said CBA President & CEO Richard Hunt.
“While consumers receive pennies on the dollar in terms of cash recoveries from class action lawsuits, trial attorneys have pocketed a hefty sum to the tune of $424 million – over $1 million on average per case (2008-2012). We encourage the Senate to follow the House’s lead and overturn this anti-consumer arbitration rule,” said Hunt.
About the Consumer Bankers Association
The Consumer Bankers Association represents America’s retail banks above $10 billion in assets. We advance legislation and promote policies geared toward creating a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans. Follow us on Twitter @consumerbankers.