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CBA Statement on President’s Signing of Arbitration CRA
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 backs that up and proves trial lawyers would have been the real winners had this rule gone into effect.
“I would like to thank the Administration and those in Congress who worked to ensure consumers have the necessary tools to receive relief without going through costly, drawn-out class action proceedings.”
The CFPB’s study showed the average consumer receives about $5,400 in cash relief when using arbitration and just $32 through a class action suit. The trial lawyers managing these cases, however, have received approximately $424 million, an average of more than $1 million per case.
The Congressional Review Act states that once the resolution is passed by both Chambers of Congress and signed by the President, the rule under debate is repealed and substantially similar rules can only be reissued with specific legislative authorization.
Hunt attended the signing ceremony at the White House.
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.