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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.
- August 23, 2016The Consumer Bankers Association submitted a public comment in opposition of the Consumer Financial Protection Bureau’s proposed arbitration rule yesterday, just under the wire. The public comment period for the proposed rule also ended yesterday. “The proposed rule should not be made final, as proposed, because it is not in the public interest or for the protection of consumers,” CBA said in its...
- August 22, 2016August 22, 2016 The Honorable Richard Cordray Consumer Financial Protection Bureau 1700 G Street N.W. Washington, DC 20552 Re: Comments on the Bureau’s Proposed Arbitration Rule Dear Director Cordray: The American Bankers Association,1 the Consumer Bankers Association and the Financial Services Roundtable (collectively, the Associations) appreciate the opportunity to provide comments regarding...
- August 22, 2016Ms. Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1700 G Street, NW Washington, DC 20552 Re: Notice of Proposed Rulemaking on Arbitration Agreements (Docket ID No. CFPB-2016-0020; RIN 3170-AA51) Dear Ms. Jackson: The undersigned associations and organizations, which collectively represent hundreds of thousands of businesses that employ millions of Americans...
- August 22, 2016On Monday, August 22, 2016, CBA and other trades filed a comment letter on the CFPB’s arbitration rulemaking proposal. CBA argued no final rule should be issued since the CFPB has yet to meet its statutory burden under section 1028 of the Dodd-Frank Act. This law requires any regulation of arbitration by the CFPB to be in the public interest, for the protection of consumers, and consistent with...August 17, 2016On Wednesday, August 17, 2016, ahead of the comment deadline for the CFPB’s arbitration rulemaking, the Pew Charitable Trusts issued an update to its annual arbitration research. In this update, Pew shows: a 6 point year-over-year increase in the use of mandatory arbitration agreements, 95 percent of consumers want the option to have a court settle their disputes, and 89 percent of consumers want...August 3, 2016On Wednesday, August 3, 2016, more than 100 congressional Democrats sent two separate letters to the CFPB supporting its proposed arbitration rule which would ban class action waivers in financial products and services agreements. The Senate letter expressed concern that forced arbitration favors financial institutions at the expense of consumers and claimed arbitration clauses frequently prevent...June 28, 2016On May 5, 2016, the Consumer Financial Protection Bureau (“CFPB”) held its fourth field hearing on Arbitration and issued a proposed Rule that would prohibit the use of arbitration clauses that block consumers’ participation in class actions in contracts for consumer financial products and services. The Rule would also require providers who use pre-dispute arbitration agreements to submit certain...June 21, 2016June 21, 2016 The Honorable Paul Ryan The Honorable Nancy Pelosi Speaker Minority Leader U.S. House of Representatives U.S. House of Representatives Washington, D.C. 20515 Washington, D.C. 20515 Dear Speaker Ryan and Minority Leader Pelosi: On behalf of the Consumer Bankers Association (CBA), I write to express our support for H.R. 5485, the Fiscal Year 2017 Financial Services and General...May 24, 2016The recent media “barnstorm” against arbitration clauses that prevent class action lawsuits doesn’t paint a complete picture, a Chicago attorney says, though the federal Consumer Financial Protection Bureau is planning to ban them. Matt Stromquist, a partner at the Chicago-based Pilgrim Christakis – a nine-person litigation boutique firm focused on consumer finance and class action litigation –...May 20, 2016CFPB’s Proposed Small-Dollar Rule Slated for June 2, 2016 The date is set! The CFPB will hold a field hearing on June 2, 2016 in Kansas City, Missouri to discuss small-dollar lending. The Bureau is widely expected to release their proposed small-dollar rule at the hearing. Let’s not forget, low- and moderate-income American families often need access to short-term liquidity. But here is the...