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CBA Statement on Phase One of the CFPB Study on Arbitration
Washington, D.C. (December 12, 2013) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following response to the Consumer Financial Protection Bureau’s (CFPB) release of phase one of its study on the use of mandatory arbitration clauses in connection with consumer financial products and services. The Dodd-Frank Act requires the CFPB to conduct a study of the use of pre-dispute arbitration clauses in consumer markets. The Act also provides the CFPB with the sole authority to issue regulations on the use of arbitration clauses if it believes doing so is in the public interest for the protection of consumers:
“I am disappointed this piecemeal release of data in connection with the arbitration study does not show the whole picture. For nearly 90 years, arbitration has been an important right which allows consumers to quickly and easily resolve disputes in a manner that is affordable for the consumer. We all know the winners in lawsuits are usually the attorneys, not consumers. Moving forward, I hope the CFPB, who has the sole authority on this important issue, will focus on how consumers fare in arbitration versus a suit in court or as a party to a class-action.”
The Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.