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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.
- 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, 2016One U.S. House Financial Services Committee member who possesses four decades of experience in the automotive space this week tried to pin down an outspoken advocate of the Consumer Financial Protection Bureau’s proposal that would prohibit mandatory arbitration clauses, alluding to the potential that modified policies might do more for plaintiff lawyers than consumers’ possible financial reward...
- May 20, 2016CBA's Vice President and Regulatory Counsel Dong Hong testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit on Wednesday, May 18, 2016. The hearing examined the CFPB's proposed rulemaking on arbitration. Key takeaways from the hearing include: Republicans generally agreed consumers benefit from being able to participate in arbitration. Also, they...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...May 19, 2016Some members of Congress and witnesses for the financial services industry argue banning arbitration would hurt businesses and consumers alike, and increase costs for products and services. The U.S. House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit critiqued the Consumer Financial Protection Bureau’s proposed rule on pre-dispute arbitration agreements...May 18, 2016The House Subcommittee on Financial Institutions and Consumer Credit determined in a hearing on Wednesday that the CFPB’s proposed rule to ban arbitration clauses in business contracts will result in higher costs to consumers and less access to financial products. Witnesses at the hearing included Dong Hong, VP, Regulatory Counsel, Consumer Bankers Association; Jason Scott Johnston, Henry L. and...May 18, 2016A House panel on Wednesday questioned whether the Consumer Financial Protection Bureau (CFPB) overstepped its bounds with a rule cracking down on waivers meant to keep financial institutions out of court. The CFPB earlier this month proposed a rule banning forced arbitration clauses in contracts for financial products. Such clauses prevent consumers from suing or joining class-action lawsuits...May 18, 2016Written Statement of Dong Hong Vice President, Regulatory Counsel Consumer Bankers Association Before the House of Representatives Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit For the Hearing “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” May 18, 2016 Chairman Neugebauer,...May 18, 2016A subcommittee of the House Financial Services Committee is holding a hearing today entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” The subcommittee is posing the question to a badly skewed set of witnesses. Two of them are representatives of industry groups (the U.S. Chamber of Commerce and the Consumer Bankers...May 18, 2016By BEN WHITE 05/18/16 08:00 AM EDT LOCKHART/WILLIAMS CRITICIZE TRUMP COMMENTS — OK, so Fed Presidents Dennis Lockhart of Atlanta and John C. Williams of San Francisco would not directly attack Donald Trump in my interview with them Tuesday. The Fed doesn’t engage in politics, after all, at least not overtly. But they did both take serious issue with Trump’s remarks that the U.S. could never...