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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 17, 2016Banks keep saying over and over that arbitration proceedings, as opposed to class-action lawsuits, are the best way for consumers to handle disputes. Yet faced with the prospect of no longer being able to deny consumers the right to sue them, the banking industry is expected to take the deliciously ironic step of suing the federal government. At issue is a proposed rule from the Consumer...
- May 16, 2016Arbitration as a means of dispute resolution is intended to help consumers and businesses save time and money and achieve fair results when compared to traditional litigation. Millions of contracts for consumer financial products and services have a pre-dispute arbitration clause that requires consumers and financial institutions to resolve their disputes through arbitration, rather than through...
- May 16, 2016Consumers angry with a bank, payday lender or credit card issuer may soon get their day in court, courtesy of a new Consumer Financial Protection Bureau proposal on forced arbitration. "Arbitration" is one of those common fine-print terms that people gloss over, but that should give them pause. "Consumers are signing away their rights," said Lauren Saunders, associate director of the National...
- May 6, 2016Big Government wants to make it easier for you to sue Big Business. The Consumer Financial Protection Bureau, or CFPB, is seeking public comment on a proposed new regulation that, if enacted, would enable consumers to bring class-action lawsuits against financial institutions. Specifically, the proposal would ban a certain type of legal language, called a mandatory arbitration clause, that often...
- May 6, 2016If government regulators get their way, it's going to become a lot easier to sue the bank. By and large, U.S. bank customers have signed away their right to sue their bank, often without being aware of it. Buried in the fine print of credit card agreements, bank accounts and insurance policies are what are known as binding, or mandatory, arbitration clauses. It means customers are generally...
- May 6, 2016If government regulators get their way, it's going to become a lot easier to sue your bank. By and large, U.S. bank customers have signed away their right to sue their bank in court, often without being aware of it. Buried in the fine print of credit card agreements, bank accounts and insurance policies are what are known as binding, or mandatory, arbitration clauses. It means customers are...
- May 6, 2016On Thursday, May 5, 2016, the CFPB released its arbitration rulemaking proposal and the Final Report of the small business review panel. The proposal prohibits covered providers of consumer financial products and services from using pre-dispute arbitration agreements to prevent consumers from filing or participating in a class action against the provider. The proposal is largely consistent with...May 6, 2016A new proposal by the nation’s chief consumer watchdog could help government regulators and prosecutors stop big banks’ dubious practices more quickly. The Consumer Financial Protection Bureau on Thursday suggested a ban on clauses tucked into contracts for credit cards, student loans and other financial products that prohibit consumers from joining together to sue financial companies for...May 6, 2016Banks and other financial companies could no longer use mandatory arbitration clauses to prevent class-action lawsuits under a proposed rule released May 5 by the Consumer Financial Protection Bureau (CFPB). Business groups immediately criticized the proposal as a “gift” to plaintiffs’ lawyers they say could result in an explosion in litigation. The long-awaited plan was expected by the industry...May 6, 2016CFPB Sides with Plaintiff’s Attorneys Over Consumers On Thursday, the CFPB released a proposal limiting consumers’ use of arbitration agreements. The real winners of the proposal were trial attorneys, not consumers. Arbitration has long provided a faster, better, and more cost-effective means of addressing consumer disputes than litigation or class action lawsuits. The CFPB’s own study shows...