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.
July 27, 2017The House voted Tuesday to repeal a controversial new rule from the Consumer Financial Protection Bureau (CFPB) that would have protected consumers’ rights to sue banks in class-action lawsuits. Lawmakers voted 231-190 to repeal the rule using the Congressional Review Act, a law that allows Congress to eliminate regulations within 60 days of their release and bars agencies from issuing similar...
July 27, 2017Now it’s the Senate’s turn. The House approved resolution on Tuesday leveraging authority provided under the Congressional Review Act (CRA) to stop the Consumer Financial Protection Bureau’s final rule prohibiting the use of class action waivers in arbitration clauses. Despite all House Democrats and one Republican voting against H.J. Res 111, the resolution cleared the chamber by a vote of 231-...
July 27, 2017The House passed a resolution July 25 that would invalidate a recently adopted Consumer Financial Protection Bureau rule to prohibit financial firms from steering consumers into mandatory arbitration to resolve disputes. H.J.Res. 111, sponsored by Rep. Keith Rothfus (R-Pa.), passed the chamber in a 231-190 vote. A similar resolution has been introduced in the Senate, where it can be passed under...
July 25, 2017Trial 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...
July 25, 2017On Tuesday, July 25, 2017, the House of Representatives passed H.J. Res. 111, a resolution to reject the CFPB’s final arbitration rule under the authority provided by Congressional Review Act, by a vote of 231-190. The companion resolution in the Senate, S.J. Res. 47, has not yet received consideration. “Today’s House vote is a resounding victory for consumers. Consumers’ access to arbitration,...
July 24, 2017Banks, consumers and their allies joined the battle over a CFPB rule on class action lawsuits as the House plans a vote Tuesday on overturning the regulation. Conservative groups sought to unify the Republican base against the rule, sending a letter to House and Senate leaders. "Failure to reverse this regulation will result in an avalanche of class-action lawsuits that will hurt jobs and do...
July 21, 2017CBA Executive Banking School Starts Monday Nearly 300 students representing 43 banks and credit unions from across the country will meet at Furman University in Greenville, S.C. for CBA’s 66 th year of Banking School this weekend. At the end of our summer program, we expect to graduate 98 bankers, including this year’s Tem Wooldridge Award winner. Each year, this award recognizes the top...
July 20, 2017The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are engaging in a high-stakes battle over the latter agency's effort to rein in mandatory arbitration clauses, in a rare public spat between federal regulators. Acting Comptroller Keith Noreika provoked the fight by publicly criticizing the CFPB's final arbitration rule, requesting that it delay its...
July 20, 2017Republican lawmakers are moving ahead to undo a rule that would make it easier for Americans to sue their banks and credit card companies. Senate and House lawmakers on Thursday separately unveiled bills that each proposes to overturn a recent rule by the Consumer Financial Protection Bureau , which blocks companies from using arbitration clauses to stop consumers from bringing class action...
Joint Trades Letter Re: CFPB's Arbitration Rule