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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 10, 2017The average consumer receives $5,400 in cash relief when using arbitration; $32 through a class action suit Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the issuance of the Consumer Financial Protection Bureau’s (CFPB) final arbitration rule. “Arbitration has long provided a faster, better, and more...
- July 10, 2017Banks and financial services companies will see their ability to require out-of-court arbitration in class action disputes with consumers limited by a Consumer Financial Protection Bureau rule set go into effect within the next year, setting up a likely partisan fight over whether Congress should intervene. The CFPB announced Monday that it would finalize its so-called “forced arbitration” rule...
- June 8, 2017On Thursday, June 8, 2017, the U.S. House of Representatives passed House Financial Services Committee Chairman Jeb Hensarling’s (R-TX) alternative to Dodd-Frank, the Financial CHOICE Act, H.R. 10. The bill passed by a partisan vote of 233 to 186. With a structured rule in place, only six amendments were considered, keeping the bill substantially similar to the version that passed the House...February 23, 2017Republicans and the Consumer Financial Protection Bureau are playing a game of chicken over a proposal that would restrict banks, credit unions and other lenders from using mandatory arbitration clauses. Republicans stand ready to deploy a rarely used legislative process called the Congressional Review Act if the CFPB finalizes the arbitration plan, which would ban clauses that prevent consumers...February 23, 2017CBA LIVE: Record Attendance on the Way Blowing past our year over year attendance numbers, we are on pace for record attendance at CBA LIVE 2017: Where [ it ] Begins. With a sold-out exhibit hall, a lively debate between banks and FinTech scheduled, and a speaker lineup featuring U.S. Bank CEO Richard Davis, Salesforce Einstein VP of Marketing Jim Sinai, and entrepreneur and Super Bowl MVP Roger...January 20, 2017On Friday, January 20, 2017, White House Chief of Staff Reince Priebus issued a memo freezing new or pending regulations in efforts to give President Trump’s appointees a chance to review them. According to the memo, no new regulations should be sent to the Office of the Federal Register (OFR) until reviewed by a department or agency head appointed by President Trump. Further, any regulations...January 18, 2017On Wednesday, January 18, 2017, the House Financial Services Committee (HFSC) released its third installment in its series challenging the CFPB’s use of disparate impact in indirect auto lending. Throughout the report, the HFSC set forth arguments why it thinks the CFPB would not be able to prove a disparate impact claim in court, especially given last year’s Inclusive Communities Supreme Court...October 3, 2016Democratic presidential nominee Hillary Clinton and Sen. Sherrod Brown (D-Ohio) on Monday called for restrictions to the use of so-called “forced arbitration” clauses in consumer contracts, signaling a coordinated response to the accounts scandal at Wells Fargo & Co. In a speech to supporters today in Toledo, Ohio, the former secretary of State named Wells Fargo as a primary example of “...September 21, 2016As the deadline for input nears, stakeholders on both sides of the issue filed comments weighing in on the Consumer Financial Protection Bureau’s (CFPB or the Bureau) proposal on arbitration. What happened In May, the Bureau released a proposed rule that would prohibit the inclusion of mandatory arbitration clauses in new contracts that foreclose class action lawsuits, although arbitration...
CBA Letter to HFSC re markup of H.R.5983, the Financial CHOICE Act of 2016