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.
  • May 5, 2016
    If government regulators get their way, it's going to become a lot easier to sue your bank. By and large, U.S. bank customers have signed away their right to sue their bank in court, often without being aware of it. Buried in the fine print of credit card agreements, bank accounts and insurance policies are what are known as binding, or mandatory, arbitration clauses. It means customers are...
  • May 5, 2016
    Consumers angry with a bank, payday lender or credit card issuer may soon get their day in court, courtesy of a new Consumer Financial Protection Bureau proposal on forced arbitration. "Arbitration" is one of those common fine-print terms that people gloss over, but that should give them pause. "Consumers are signing away their rights," said Lauren Saunders, associate director of the National...
  • May 5, 2016
    If government regulators get their way, it's going to become a lot easier to sue your bank. By and large, U.S. bank customers have signed away their right to sue their bank in court, often without being aware of it. Buried in the fine print of credit card agreements, bank accounts and insurance policies are what are known as binding, or mandatory, arbitration clauses. It means customers are...
  • April 28, 2016
    On Thursday, April 28, 2016, CBA sent a letter to Congressmen Blaine Luetkemeyer (R-MO) and Randy Neugebauer (R-TX) thanking them for their continued oversight of the CFPB and its implementation of the TRID rules. In its letter, CBA explained the continued complications banks encounter in establishing operational systems to merge TILA and RESPA, which has led to longer closings for consumers as...
  • April 22, 2016
    Judge Dings CFPB for Stepping “Well-Outside” Its Authority The CFPB was dealt another blow this week when a D.C. District Court Judge ruled the Bureau had stepped “well-outside” its authority. Judge Richard Leon put a stop to the Bureau’s investigation into a for-profit accreditation organization and dismissed the related enforcement action. The court found the CFPB acted outside its jurisdiction...
  • April 20, 2016
    The CFPB announced a field hearing focused on arbitration will take place on May 5, 2016, in Albuquerque, New Mexico. It will take place at 11 a.m. UTC (1 p.m. EST) and will be live-streamed from the agency’s blog . The hearing will include remarks from CFPB Director Richard Cordray as well as testimony from consumer groups, industry representatives, and members of the public.
  • April 7, 2016
    April 7, 2016 The Honorable Richard Shelby Chairman, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 Dear Chairman Shelby and Ranking Member Brown: The Consumer Bankers Association (CBA) [1] appreciates the Banking...
  • March 16, 2016
    Dear Chairman Hensarling and Ranking Member Waters: The Consumer Bankers Association (CBA) appreciates the Financial Services Committee’s continued oversight of the Consumer Financial Protection Bureau and its activities. We would like to take this opportunity to submit the following comments on the hearing entitled, “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” CBA is...
  • January 15, 2016
    As expected, reaction to the Consumer Financial Protection Bureau's arbitration study report , released in March 2015, has been vociferous. All sides of this important debate are loudly proclaiming that their arguments for, or against, mandatory arbitration clauses have been vindicated by the report. Alternatively, they complain that the study is unfair and misleading and should not be used to...

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