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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 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...
- July 18, 2017“The CFPB’s anti-arbitration rule hurts consumers and it’s another example of the problems caused by this rogue and unaccountable agency,” stated Rep. Rothfus upon introduction. In response, House Financial Services Committee Ranking Member Maxine Waters (D-CA) stated, “The Consumer Bureau’s forced arbitration rule ensures that consumers are not required to sign away their legal rights in order...July 14, 2017CBA Working to Overturn CFPB’s Arbitration Rule This week, I appeared on " Nightly Business Report " to debate Rohit Chopra, former assistant director at the CFPB, over the CFPB’s “Washington Knows Best” arbitration rule. As I mentioned to hosts Tyler Mathisen and Sue Herera, the CFPB’s arbitration rule is a raw deal for consumers. Arbitration has long provided a faster, better, and more cost-...July 14, 2017Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the House Appropriations Committee’s passage of the Fiscal Year (FY) 2018 Financial Services and General Government Appropriations bill. “We applaud the committee’s passage of several initiatives reforming the CFPB, including addressing the Bureau’s...July 13, 2017Yesterday, the Consumer Financial Protection Bureau (CFPB) issued its long-anticipated final rule on arbitration clauses in contracts governing consumer financial products and services. While the CFPB is not banning arbitration clauses outright, the new rule would prevent the use of arbitration provisions to block class action lawsuits. The rule is set to go into effect in eight months, but a...July 13, 2017The Consumer Financial Protection Bureau's arbitration rule , issued Monday, could put dealerships and auto lenders at risk for class-action lawsuits. But some experts questioned whether the rule will ever take effect, while various industry associations quickly issued statements denouncing the rule. The rule prohibits banks and other financial services companies from including mandatory...July 13, 2017CARY, N.C. - Clearly the industry is “disappointed” that the Consumer Financial Protection Bureau earlier this week issued a final rule prohibiting the use of class action waivers in arbitration clauses. The American Financial Services Association, the National Independent Automobile Dealers Association and the American Bankers Association all used that specific adjective when relaying their...July 12, 2017A decision by the Consumer Financial Protection Bureau that financial companies may not require consumers to resolve disputes in arbitration, rather than in class action lawsuits, prompted strong criticism from industry groups, while consumer advocates cheered the new rule. A move by the Consumer Financial Protection Bureau to ban mandatory arbitration in consumer contracts with financial...July 12, 2017The lucrative and costly business of class-action lawsuits has been turned upside down by a new federal rule. And the fight to save or kill it has just begun. After years of review on the subject, the Consumer Financial Protection Bureau, an independent federal watchdog agency, declared a new rule Monday that bans banks, credit card companies, payday lenders and other financial firms from...July 12, 2017Consumers can now sue banks in class-action lawsuits. The Consumer Financial Protection Bureau said Monday financial companies will no longer be allowed to force customers to use arbitration to settle group disputes, restricting the industry's favored legal tool after years of review. Currently, credit card and bank companies often insert arbitration clauses in their contracts to prevent...