Joint Comment Letter to OMB re: CFPB Telephone Survey on Exploring Consumer Awareness of and Perceptions Regarding Dispute Resolution Provisions in Credit Card Agreements

Bureau of Consumer Financial Protection

Attention: PRA Office

 

Re: Docket No. CFPB-2014-0011

​Office of Management and Budget Control Number 3170 XXXX:

Telephone Survey Exploring Consumer Awareness of and Perceptions Regarding

Dispute Resolution Provisions in Credit Card Agreements.

 

Ladies and Gentlemen:

The American Bankers Association, the Consumer Bankers Association, and the Financial Services Roundtable (the Associations) appreciate the opportunity to comment on the Bureau of Consumer Financial Protection’s (Bureau) request for approval from the Office of Management and Budget (OMB) to conduct a national telephone survey of 1,000 credit card holders as part of its study of mandatory pre-dispute arbitration agreements.

Section 1028(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act) requires the Bureau to conduct a study and report to Congress concerning the “use” of agreements providing for arbitration of any future dispute in consumer financial products. The Dodd/ Frank Act does not require the Bureau to conduct a survey of consumers as part of that study or otherwise. Under the Dodd-Frank Act, any exercise of the Bureau’s authority to under Section 20128(b) to prohibit or limit the use of arbitration provisions in consumer financial services agreements if it finds that doing so is “in the public interest and for the protection of consumers” must be consistent with the study. 4 The current request is focused exclusively on determining credit card holder awareness and understanding of credit card dispute resolution rights and whether they were a factor in selecting a credit card. The proposal follows the Bureau’s earlier request for comment published in the Federal Register on June 7, 2013. 

 

To read the full Comment Letter, please download the PDF.